Description
Whether you are about to launch your new small business, or your business is already up and running, marketing is the lifeblood of your business.
03
Managing your business >
Marketing
your business
For all your business enquiries contact:-
T: 01269 590219
Publication produced by:-
Carmarthenshire County Council
Economic Development Division
Business Resource Centre
Parc Amanwy, New Road
Ammanford
Carmarthenshire SA18 3EP
T: 01269 590200
E: [email protected]
W: www.carmarthenshire.gov.uk
Publication funded under the Celtic Enterprise & Business Support Network, an Interreg IIIA
funded project, in partnership with Waterford City Enterprise Board Ltd and South East Region
Enterprise Boards
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Managing your business > Marketing your business
3. PRICING
Every product or service has a price. In
order to set a price, you need to consider:
? Your cost price calculations (including
pricing your time)
? How much are your customers
motivated/influenced by price?
? Your pricing strategy (Cost plus,
Market minus, Penetration,
Skimming, etc.)
Whatever you decide, stick to it and do not
be afraid to ask!
4. THE IMAGE YOU WANT TO
PROJECT
Your image determines how your
customers perceive you. Does your image
instil trust, is it helpful to your business, or
is it a hindrance? With regard to your
image, you need to consider:
? The name you use for your company/
product/service
? The logo you use
? The location you use (particularly
relevant to retail)
? Working from home – pros and cons
5. MARKETING COMMUNICATIONS
You need to bring your potential customers
from being unaware of you to actually
buying. To achieve that, you need to be
able to communicate:
? What you do (who, what, where, how)
? Your unique selling proposition
? Your features and benefits
? Your marketing message
(sales and image)
Again, once you have decided, stick to it.
1. INTRODUCTION –
WHY YOU NEED MARKETING
In order to succeed, you need cashflow. To
get cashflow, you need paying customers.
To get customers, you need marketing. As
your own marketing director, you have to
make decisions about:
? The product or service
? Pricing
? Customer service levels
? Distribution
? Advertising
? PR
? Selling
2. MARKET RESEARCH
The better your market research, the
smarter your decisions, and the more
profitable you will be. Market research will:
? Help you to determine whether the
idea is viable
? Help you to identify the customers
within your target markets
? Help you to analyse the market and
the competition
? Help you to analyse your own
capabilities
Market research involves two routes to
information. One is straight from the
horse’s mouth, asking the target market
directly through:
? Questionnaires
? Focus groups
? Indirect research (spying,
counting, etc.)
The second route is through existing
sources of information. Whatever you do,
you need to do it and keep doing it.
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Managing your business > Marketing your business
8. WORD-OF-MOUTH
Word-of-mouth/referral is a powerful way
of reaching new customers, particularly for
small business. There are different
sources:
? Existing customers (ask!)
? Friends and family (ask!)
? Professional colleagues (ask!)
? Influencers
Develop word-of-mouth by looking at your
dress code, behaviour, language, etc., via
smart use of business cards, via “thank
you” notes and a tracking system.
Go out and do it!
9. SELLING & DISTRIBUTION
You never stop selling. The trick is to stay
true to your own style. Selling ultimately
(but not only) is about clinching the deal.
Keep trying and you will.
Consider:
? Direct/indirect distribution channels
(sales routes) to deliver your product
or service
? Export – pros and cons
(Carmarthenshire is very small as a
home market)
10. CUSTOMER RELATIONSHIP
MANAGEMENT
Once you have acquired customers it
makes good business sense to keep them.
Work through the checklist on page 63.
11. SERVICE BUSINESSES
Because services are intangible, you need
to put even more emphasis on marketing
and added value. Image and people
become key!
6. MARKETING MEDIA
Once you have decided on your messages,
the next step is to choose the right balance
/mix of media from among all the options,
including:
? Print media:
Business cards
Brochures/flyers
Direct mail
Advertisement
? PR:
Media releases
Articles
Newsletter
? Broadcast media:
Radio
Cinema
TV
? On-line media
? Outdoor and transit media
? Sales promotion media:
Packaging
Point of sale
Giveaways
Exhibitions and trade fairs
Match your Message to your Market using
the right Medium (and budget).
7. HIRED GUNS
These include:
? The copywriter
? The graphic designer
? The PR consultant
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Managing your business > Marketing your business
? Formulate the marketing messages
that will attract customers and
persuade them to do business
with you
? Convince yourself of the value of your
product or service before you try and
convince others
? Think of yourself as a walking and
talking marketing vehicle, dedicated
24 hours a day to projecting a
positive image of your business
? Your business card can be your most
valuable marketing tool – the next
card you give out could land you your
biggest customer yet
? Resist the temptation to write your
own marketing literature or design
your own visual communications
? Look for opportunities to get a story
about your business in the local,
national and trade media
? Find out if your potential customers
will use the web to find you before
you invest in a website
? Always match your message to your
market using the right medium
? There are professionals out there who
specialise in creating and
communicating your visual and
textual marketing messages
? Explore the power of word-of-mouth
referrals and the potential of joint
venture marketing
? Make your marketing efforts stand out
from the crowd by daring to be
different
12. DARING TO BE DIFFERENT!
You need to stand out. What can you do
differently, how can you make people sit
up and attract attention. Look at the
examples and try to come up with ideas.
Boldly go where no one has gone before!
13. CREATING A
MARKETING STRATEGY
Tips to remember as you devise and
develop your own marketing strategy:
? The main goal of your business is to
create a coherent marketing strategy
that will drive the engine of your
business
? Understand the business context in
which you operate
? Make time for keeping up-to-date on
the latest developments in your market
? Your customers are the lifeblood of
your business . without them, your
business will not survive
? It’s not enough for your customers to
need your product or service, they
have to want it
? Once you have achieved your
short-term goal of acquiring new
customers, devote most of your efforts
to pampering your existing customers
? Guide your customers from
unawareness through awareness
through knowledge through preference
through conviction to action
? Develop a positioning statement that
expresses the core message you want
all your internal and external
communications channels to deliver
? Develop a USP that communicates a
powerful statement of the uniqueness
of your service or product
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00 Managing your business > Marketing your business Bookkeeping Systems
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Managing your business > Marketing your business
Your time commitment to marketing is not
negotiable. When I hear small businesses
plead shortage of time as their excuse for
not developing a coherent marketing
strategy, I am reminded of a classic scene
from The Muppets. A pressured Kermit
has told Miss Piggy that he simply has no
time on his schedule to see her. “Kermie,”
she snarls with her trademark malevolent
smile, “MAKE time!”
Because marketing textbooks offer such a
profusion of marketing terms, it is useful
to start with some working definitions:
? Business plan – A working manual that
spells out what your business is about
– what you do and do not do, and
what your ultimate goals are. Your
business plan is a planning tool that
helps you assess your business
decisions within a wider context, and
also shows how you plan to support
your marketing operation
? Marketing strategy – Your marketing
strategy (this is a better term than
“marketing plan”) forms part of your
business plan, and presents a step-
by-step guide to how you intend to
implement the marketing elements of
your business plan. Your marketing
strategy is a roadmap that
encompasses every aspect of
marketing your business. Do not
confuse marketing strategy with
marketing tactics such as advertising
and PR. Without a marketing strategy
to give you direction and focus, your
marketing activities are like shooting
from the hip
Whether you are about to launch your new
small business, or your business is already
up and running, marketing is the lifeblood
of your business.
Marketing in a nutshell:
? In order for your small business to
succeed, you need cashflow
? To get cashflow, you need customers who
pay you for your product or service
? To get customers, you need to market your
business
It really is as simple as that.
Remember that it’s not enough to produce a
product or provide a service. Your number 1
goal must be to market your product or
service.
Marketing is all about letting people know that
you are in business. However good the
product or service you are offering, your
business cannot survive unless you attract
customers. You must create a coherent
marketing strategy that drives the engine of
your business and enables you to operate at a
profit. Failure to do so means that all the
energy and expense that went into creating
your business plan will be wasted.
Marketing is not:
? A luxury
? An expense
? Something you can or cannot afford
Marketing is:
? A financial investment – and your
customers are your ROI (return on
investment)
? A time investment – don’t spend a single
penny on marketing until you have taken
the time to learn about your market, to
consider your options, and to plan how to
market your business
1. WHY YOU NEED MARKETING
CASE STUDY:
Mr. Wrigley & the Train
Mr. Wrigley, he of the famous
chewing gum, was on a train
journey. One of his bright young
executives said to him, “Mr. Wrigley,
the whole world knows your chewing
gum. Just think of how much money
you could save by drastically cutting
the Wrigley marketing budget.”
Mr. Wrigley turned to the young man
and asked: “How is this carriage
moving?”
“It’s being pulled by the engine,
sir”, the young fellow replied.
“And what would happen if the
engine stopped?”
“The train would grind to a halt,
sir.”
“Precisely”, said Mr. Wrigley, “Just
think of marketing as the engine
which pulls the whole train. If we
stop investing in the marketing of
our chewing gum, the whole impetus
of our business will slow down, and
our operations will grind to a halt.”
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Managing your business > Marketing your business
your USP (Unique Selling Proposition)
and your marketing messages.
? Chapter 6 examines all the options that
go into creating your own distinctive
media mix: print media (such as
advertisements and brochures), public
relations (PR), broadcast media (TV,
radio and cinema), on-line media (the
Internet), outdoor and transit
advertising (billboards and bus
advertising), and sales promotion
media.
? Chapter 7 introduces you to the
marketing professionals who can help
you develop and implement your
marketing strategy.
? In Chapter 8, you will learn about the
importance of word of mouth
marketing.
? Chapter 9 is all about selling,
distribution and export.
? Chapter 10 describes the role of
Customer Relationship Management
in your marketing strategy.
? Chapter 11 is devoted to the special
marketing challenges facing small
businesses that offer a service rather
than a product.
? Chapter 12 looks at some offbeat ways
of developing a marketing strategy.
? Chapter 13 presents a sample
marketing strategy.
The goal of this workbook is to help you
formulate and develop a marketing
strategy with which to navigate your
marketing route. As the Cheshire Cat said,
when Alice asked which path to follow:
“If you don’t care where you’re going, it
doesn’t make a difference which path you
take.”
? Marketing activities – Marketing tactics
like advertising and PR – that help you
deliver your marketing message to your
potential customers. Marketing tactics
cannot replace a properly defined
marketing strategy
Every business needs a marketing
function. Someone has to be responsible
for the marketing operations. If you run
a small business, that someone may
well be you.
As your own marketing director, you will
have to make decisions about:
? The product or service
? Pricing
? Customer service levels
? Distribution
? Advertising
? PR
? Selling
At all times, you should always involve your
staff in all your marketing activities.
This publication is designed to take you
step-by-step through the process of
marketing your business:
? In Chapter 2, you will learn about the
market research that will determine
whether your idea is viable, and
whether you can find a niche in the
market of your choice.
? Chapter 3 looks at pricing issues.
? Chapter 4 discusses the image you
wish to project for your business,
including whether or not you need a
brand name or logo, and where you
establish your business base.
? Chapter 5 helps you develop your
marketing communications, which
includes your positioning statement,
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Market research never stops, which is why
the data that underpins your decision
making must constantly be reviewed. The
more you continuously monitor what is
happening in the market, the better
equipped you are to fine-tune your
ongoing marketing operations.
IS YOUR IDEA VIABLE?
No amount of market research can ever
guarantee that your business will ultimately
be viable. There are too many other
variables at play here.
However, market research can help you
determine whether your idea is viable in
the first place. So even before you embark
on gathering intelligence data on your
market, you first have to develop and test
your business idea by subjecting it to a
critical analysis.
WHY DO YOU NEED MARKET
RESEARCH
Market research lies at the very core of
business planning. It begins the moment
you decide that you want to start a new
business – and never really ends.
Market research means becoming
knowledgeable about your market. With
market research, you will possess the
information you need to make smart
marketing decisions about your business.
And the smarter your decisions, the more
profitable your business will be.
Market research helps you to:
? Understand the business context in
which you operate
? Accurately identify and target your
market
? Check whether there is demand for
your business idea in the market
? Ascertain whether there really is a
market for your product/service
? Become knowledgeable about your
potential customers
? Identify what your customers want,
demand and expect
? Determine who are your competitors
? Identify gaps and opportunities in the
marketplace
? Understand the industry in which you
operate
? Find out whether you know how to sell
yourself
? Determine the focus of your marketing
strategy
? Obtain feedback about your ideas
2 MARKET RESEARCH
10 QUESTIONS ABOUT
YOUR BUSINESS IDEA
1. Why is it a good idea?
2. On what assumptions is that
opinion based?
3. How can you prove that those
assumptions are correct?
4. What types of customer will be
interested in your
product/service?
5. Why?
6. List 4 reasons why the idea may
not work?
7. List 4 reasons why your idea will
work.
8. What is the difference about this
idea from others already in the
marketplace?
9. Why are those differences
important?
10. What if… you changed the
product/service in some way?
Source: Starting Your Own Business
Workbook, Oak Tree Press
Before a military commander attacks a
stronghold, he tries to obtain military
intelligence: aerial photos, building plans,
and personal eyewitness accounts of the
target. When you are targeting your
market, you too need critical intelligence
information: demographic data, business
data, statistics, and eyewitness accounts
from people who have operated in that
market.
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Some businesses have multiple target
markets. They offer a range of products or
services to several different markets. This
is fine – just remember to get the mix
right. You need to be sure that what you
supply to one market does not offend or
antagonise another market.
As you gather your intelligence data on
your target market, you need to focus on
several different aspects of your market to
help you understand why certain people
will become your customers and why
others won’t. For example, caravan owners
are much more likely to buy caravan
equipment than non-caravan owners. The
more detailed your information, the better
you will be able to identify potential
customers. And the better you can identify
them, the better you will be able to target
them later.
Analysis of your target market
(prospective customers)
This involves answering these questions:
? What is the age, gender and income
level profile of your customers?
? What language(s) do they speak?
? What is their marital status?
? What nationality are they?
? What distinguishes their culture and
their lifestyle?
? What are their extra-curricular
activities, interests, hobbies?
? Where are they located?
? What do they want and what don’t
they want?
? What motivates them to buy?
? Where do they normally buy similar
products (in a store, Yellow Pages,
direct mail)?
IDENTIFYING YOUR TARGET
MARKET
To identify and understand your target
market, you need to know how your
potential customers behave, motivations,
their perceptions, their preferences, their
attitudes and their knowledge. You also
need to know what your customers want.
Don’t confuse need and want. How many
times have you gone to the supermarket
because you needed milk and bread – and
emerged with a frozen Chinese meal, ice
cream, a bottle of wine and some crisps.
We may forget what we need, but we buy
what we want.
That’s why your products and services
should reflect what your target market
wants to buy rather than what you want to
sell. And the best way of discovering what
they want is to put yourself in their shoes:
? Think like a customer
? Look at your business like a customer
? Ask yourself if you are happy with
every aspect of the buying experience
Your customers must want your product or
service. If they don’t want it, even if they
need it, you can’t sell it.
When you are in the process of identifying
your target market, you must learn to
differentiate between your true customer
(the one who signs the cheque) and the
ultimate user/beneficiary.
EXAMPLE: 1
Mike runs a delivery service
specialising in house-to-house
deliveries. One of the most
important sources of his income is
the local churches, which use Mike’s
service to have their parish
magazines hand-delivered. When
Mike agreed to deliver packages for
a new customer who rented out
adult videos, Mike’s church
customers were not impressed.
EXAMPLE: 2
Phyllis runs a tourism venue that is
an ideal attraction for senior citizen
day trippers. Because she thought
that her target market was the
50,000 senior citizens who belong
to senior citizen clubs, she worried
that her marketing efforts would
prove too costly. It was only when
she realised that her true target
market consisted of just 150 social
directors of senior citizen clubs that
she was able to focus her attention
on reaching these decision-makers.
They, not she, had the job of
persuading the 50,000 seniors to
come and visit her tourist venue.
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Analysis of the competition
This involves answering these questions:
? Do you know who your direct
competitors are?
? Do you know who your indirect
competitors (those competing for the
same money pool) are?
? Will your entry into the market be a
threat to your competitors?
? How are they likely to react?
? What are their capabilities?
? What are their future prospects?
? Is there too much competition in the
market?
? Is there too little competition?
? What are the weaknesses in your
competition’s offering?
? What alternatives do your customers
have to your product/service?
Analysis of your own capabilities
It is also worth asking yourself some
pertinent questions about yourself:
? What areas of marketing are you
comfortable with?
? What areas of marketing are you weak
in?
? Have you instilled the right attitudes
to customer satisfaction in your staff?
? Is the marketing culture in your
business strong enough?
? Why do they buy this product or
service?
? When do they decide to buy this
product or service?
? What do they listen to on the radio?
? What do they watch on TV?
? What daily and local newspapers do
they read?
? Where do they socialise?
? What is their sexual orientation?
? How do they spend their money?
? Who makes the purchasing decision
(husband, wife, child, buyer, manager,
secretary)?
? What would persuade them to come to
you rather than to the competition?
Analysis of the market/industry
This involves answering these questions:
? Are you trying to attract business
customers (what is known as B2B –
business to business)?
? Are you trying to attract consumers
(what is known as B2C – business to
consumer)?
? Is there sufficient demand (is the
market big enough) for you to make
money?
? Can you identify a niche in the market
that is under-served?
? Is there a gap in the market that you
can fill?
? Are you offering something new
to the market?
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A huge amount of secondary research is
available from publicly accessible
information sources:
? National Statistics Office
(www.statistics.gov.uk)
? Department of Trade & Industry
(www.dti.gov.uk)
? Government Departments and
Agencies
? Business magazines
? Local and national newspapers
? Banks
? Local Enterprise Agencies
? Professional associations
? Trade bodies
? Trade associations
? Trade publications
? Trade directories
? Trade exhibitions and conferences
? Web-based directories and resources
? Non-profit agencies
? Back issues of magazines and
newspapers
? Yellow Pages
? Competitors’ catalogues, brochures
and price lists
? Professional advisers (accountants,
solicitors, consultants)
? Local authorities
? Universities and colleges
FINDING THE INFORMATION
YOU NEED
Once you have identified in which areas
you need information, you need to know
how to go about obtaining this information.
Market research consists of:
? Primary research in which you go
directly to the target market and ask
questions
? Secondary research in which you look
for sources of information
If you conduct your secondary research
before your primary research, you will be
able to formulate better questions. You’ll
find much of the secondary research
information you need free of charge at
your public library or on the Internet.
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Focus groups
Another way of collecting valuable market
data is by using a focus group.
The function of a focus group is to provide
you with feedback on your ideas. You
assemble up to 10 people together in one
room, and get them to discuss and react
to a specific topic relevant to your
business. These deliberations, preferably
moderated by an outside facilitator, can
often provide you with richer and more in-
depth data than questionnaires.
Questionnaire
Armed with this background information,
you can now conduct primary research to
help you understand the nuts and bolts of
your market.
Qualitative research refers to in-depth
studies done on individuals and/or smaller
groups. Quantitative research is used to
generate a large quantity of data that will
form the basis for making predictions.
Small businesses can rarely afford
comprehensive quantitative research. A
more realistic alternative is to concentrate
on qualitative research such as
questionnaires and focus groups.
Your questionnaire should be based on all
the preparatory information you have
gathered. To encourage your prospective
customers to complete your questionnaire,
keep it relatively short and uncomplicated.
YOUR MARKET RESEARCH
QUESTIONNAIRE
Write down 10 questions you would like to ask the representative sample of your target
market:
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
FOCUS GROUP CHECKLIST
1. Choose a venue that provides a
comfortable environment for
constructive discussion.
2. Choose a professional facilitator.
3. Provide a free lunch . and you
won’t need to pay them for their
time!
4. Select participants carefully to
obtain a balanced mix of
experience and skills.
5. Select participants who represent
your target market.
6. The facilitator must ensure that
every participant expresses an
individual opinion.
7. A focus group is not a jury –
there does not have to unanimity.
8. The aim of the group is to focus
on a number of key issues –
make sure that these issues are
clearly explained.
9. Make sure the discussions are
minuted.
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Indirect research
Sometimes, you will not be able to obtain
the information you need from first-hand
sources. Use your ingenuity to indirectly
tap the information you require:
? Count how many cars are in your
competitors’ parking lots
? Count the “footfall” (the number of
people passing a particular spot)
outside the premises you intend to buy
? Count the footfall going into your
competitors’ premises
? Count the number of trucks delivering
to your competitors
The results of your primary and secondary
market research will form the basis for
formulating your marketing strategy.
Check that you have covered all the
relevant elements.
Market research must never be a one-off
event. You must constantly acquire vital
information about the evolution of your
market and your industry. Learn from Bill
Gates. Every year, he takes a week off with
just a suitcase full of books in order to
catch up on essential reading.
MARKET RESEARCH CHECKLIST
Does your market research cover:
Market size and structure YES/NO
Market trends YES/NO
Market potential YES/NO
Market share YES/NO
Level of competition in the market YES/NO
Competitor products/services YES/NO
Competitor prices YES/NO
Customer profile YES/NO
Customer attitudes YES/NO
Demographic factors YES/NO
Economic factors YES/NO
Industry factors YES/NO
Government factors YES/NO
Level of demand for your product/service YES/NO
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One way of testing your proposed pricing
policy is to ask the people who should,
would or could be interested in your
product or service:
? What would you regard as a fair price?
? What would you regard as too low a
price?
? What would you regard as too high a
price?
Ask them to be honest, and not just to give
you the answers you want to hear.
Remember that pricing is not always an
exact science. Although, logically, the more
standardised your product or service, the
more price sensitive it becomes, this logic
does not always stand up. In some
markets, especially in the services sector,
there can be a sort of reverse psychology.
The more you charge, the more customers
you attract.
A related but separate area of market
research is pricing. Every product or
service you intend to offer must have a
price set for it. In determining your pricing
policy, you need to calculate your:
? Production costs
? Profit margins
? Overheads
? Promotional and advertising expenses
? Delivery costs
You also have to juggle with several
different variables:
? The lowest price you can afford to
charge and still make a profit
? The price your customers are used to
paying for a similar product or service
? The highest price you can charge and
still attract enough customers to be
profitable
Price is often a compromise between you
and your customer:
? You want to charge as high as the
market will allow
? Your customer wants to pay as little as
possible
Once you have determined your pricing
structure, stick with it. Try and get your
pricing right from the beginning . raising
your prices later runs the risk of
antagonising your customers.
Remember that while some customers use
price as the sole criterion for their buying
decisions, others give greater consideration
to service, dependability, and convenience
value. Before you determine the price of
your product or service, you need to know
what motivates your customers.
3. Pricing
EXAMPLE 1:
You produce a flavoured milk drink
that you want to sell to a small 5-
store local chain of grocers. In order
to be competitive, you will have to
sell the drink to the chain at the
same price they are paying their
existing supplier – or even lower.
EXAMPLE 2:
You run a call-out plumbing service.
The going rate in the area is £20.
You will have a problem trying to
charge much more.
EXAMPLE 3:
You are a physiotherapist. You
charge 50% more than all the other
physiotherapists in town. People
flock to you because they think:
“If he’s charging so much, he must
be good.”
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Managing your business > Marketing your business
NEGOTIATING PRICES
If you have never had to negotiate prices
before, you may find that you are reticent
to talk about money to your customer. You
may feel such gratitude and relief that you
have received an order that your business
sense goes out the window and you charge
a price that is too low. Get over it!
Make a list of features and benefits for
each product, and put a price on each
benefit. You will soon find yourself well
able to justify your price. Small businesses
are often frightened by their own pricing.
Even though you know that your sums are
right, there is a temptation to underprice,
especially if business is slow. Customers
are quick to sense your embarrassment,
and will exploit it if they can.
If you find yourself breaking into a cold
sweat every time you have to communicate
your price, it means that you yourself are
not yet convinced of the value of your
product or service. Always maintain eye
contact with your customer when you are
discussing price. Your steady gaze helps
your customer believe that your
product/service is worth the money.
PRICING STRATEGIES
There are several types of pricing strategy:
? Cost-based pricing – You arrive at the
price by adding the costs of
production (material, labour, fixed
and variable overheads) and business
operations to a profit margin. This is
a popular strategy in manufacturing
? Mark-up pricing – You add a pre-set
percentage to the cost of goods from
your supplier + distribution costs.
This is a popular strategy in retail
? Demand-based pricing – You determine
price according to what customers are
willing to pay
? Follow the market pricing – You set your
price by following the usual or average
price of your competitors
? Penetration/loss leader pricing – You
offer a low price or below cost price in
order to attract customers away from
the competition. Note that the prices
of certain items such as milk and
bread are subject to special
regulations regarding minimum price
? Price skimming – You go in with an
initial high price, and reduce the price
as the market becomes saturated or as
the novelty value wears off. Look at
how computer prices plummet just a
few months after they are launched
? Time-based pricing – This is common
practice for service businesses,
whereby you agree a fee per hour and
calculate the number of hours the job
takes or should take
DETERMINING YOUR PRICING
STRUCTURE
What are customers used to
paying at present? £__
What do your competitors charge for a
similar product/service (on average)? £__
What is your price? £__
What are the components
of your price?
Materials £__
Time £__
Equipment cost £__
Distribution £__
Other costs £__
Total costs £__
Profit margin £__
Selling price £__
Will you offer discounts? Yes/No
If yes, what kind of discount?
Will you give special offers? Yes/No
If yes, what kind of special offers?
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Managing your business > Marketing your business
Remember that customers like dealing
with a reputable business. Project the
image of success. Project a professional
appearance.
Talk the language of “we” rather than “I”.
In the B2B (business to business) field
especially, customers are often more
comfortable dealing with entities rather
than with individuals.
Your aim at all times is to develop and
maintain a consistent image that is
reflected in everything you do. Have a look
in the mirror as you start your work-day
and ask: “Would I be comfortable doing
business with this person?”
Because that is exactly what customers
are asking themselves: “Can I trust this
person/business to deliver the benefits
they promise?”
You are your own walking and talking
marketing vehicle. Think of yourself as a
company van, with your business’ name and
contact details emblazoned on your front,
back and sides.
THE IMPORTANCE OF IMAGE
Once you have identified your market, you
need to give attention to the image you
wish your business to project. The
decisions you make about your business
image will influence the way you are
perceived by your customers. The question
you need to ask yourself is: Is my image a
help or a hindrance to my business?
The impression you make on others
depends on several image factors:
? Dress code and grooming
? Personal hygiene
? Attitude
? Politeness
? The car you drive
4. THE IMAGE YOU WANT TO PROJECT
HELPFUL IMAGE UNHELPFUL IMAGE
You are making an
important presentation
to a potential customer.
You sell high-quality
bedroom furniture.
You run a small jam and
preserves company with
its own shop.
You run a childcare
facility.
You are giving a seminar
to would-be
entrepreneurs.
You turn up early and make sure
that everything is in working order
for your presentation.
Your delivery person dusts the
newly-installed furniture, and
everything around it.
You give out a small sample jar with
every over-the-counter order.
You greet each parent by name as
they bring their child each morning.
You hand out a synopsis of your
seminar for the audience to refer to
later.
You turn up late and fumble your way through the
presentation.
You turn up to deliver the furniture in a battered old
van.
Customers in the shop can see your employees
smoking in the back.
Your hair is unkempt, your clothes are scruffy, and
you have BO.
You are not careful with your language, and offend
some of the participants.
SITUATION
? The location of your business
? The name of your business
? Your staff
? Your business cards
? Your logo
? The message on your answer phone
You can’t afford to dismiss the image
issue. You can produce the world’s
highest-precision paper clip, or give the
world’s most heavenly massage, but if
you’re not making the right impression on
your customers, you’ll find you don’t have
any.
The situations below show you how image
can play a key role:
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Managing your business > Marketing your business
when people encountered this strange
sounding brand name for the first time.
But did anyone decide not to buy an Apple
because it had a funny name? Unlikely.
Bearing in mind that your business is
surrounded by mass-volume advertising
and brand promotion, you need to ask
yourself: “Are my brand names making it
easier or harder for my customers to
recognise and value my business?”
While you might think that your products
and services will benefit from a brand
name, your business may actually suffer if
customers perceive this as being too smart
by half. Use your market research to help
you decide.
If you do decide to create a new brand
name, the panel has some useful tips.
YOUR NAME AS IMAGE
The name of your business, product or
service also impacts on your image.
One of the first decisions any small
business has to make is whether to use
their own name or to create a brand name
for the business.
If you are a solicitor, accountant, mortgage
broker or auctioneer, it is traditional – but
not mandatory – for your name to be
synonymous with the business name. If
you produce consumer items to be sold in
retail outlets, you are more likely to want to
create your own brand name. Look at the
examples in the table, and decide what
makes sense for you.
In the end, it is a comfort thing. There are
no rights and wrongs. Go with your
intuition. When Apple computers first hit
the market, many eyebrows were raised
USING YOUR OWN NAME CREATING A NEW NAME
Pine furniture
House-cleaning service
Landscape gardener
Web designer
PR consultant
Engineering
Fashion boutique
Insurance
Milk based fruit drink
Plastic garden chair
Safety at work training
programme
Recipe book
Shane Faulkner Pine Furniture
Sally Whittaker House-Cleaning Services
Steven Quinn Landscape Gardening
Deirdre Black Web Design
Mary Briggs PR Consultancy
Mary Hughes Engineering
Stella McArdle Fashions
Peter Malone Insurances
Collins Dairies Fruit Drink
Daly Brothers’ Garden Chair
The Jan Butler Consultants’ Safety at Work
Training Programme
The Dave Macintosh Recipe Book
The Pine Place
Clean-Up
Verdant
Online Web Design
Image Consultants
Proto Engineering
Bucks Fizz
QuoteDirect
Tootee-Frootee
The Relax Range of garden chairs
Watch It!
Yummy!
DESCRIPTION OF BUSINESS
BRAND NAME TIPS
1. Avoid names that are too long,
too complicated, too difficult to
pronounce or too difficult to
spell – unless you believe that
the novelty factor will work to
your advantage.
2. Avoid initials unless they mean
something.
3. Avoid names that could be
confusing for your customers –
unless this is deliberate (such as
FCUK – French Connection UK).
4. Brainstorm (by yourself or with
others).
5. Make your decision and move on,
otherwise you end up wasting
valuable time.
6. Don’t ask too many people their
opinion – names are intuitive,
not scientific.
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Managing your business > Marketing your business
YOUR LOCATION AS IMAGE
You have probably heard the famous
adage about the three things that
determine the success of a retail shop:
Location, Location, Location.
Location can also have image implications
for retail outlets. Location can have less
critical image implications for non-retail
businesses, such as:
? Businesses where the customer never
steps inside an office – a window
cleaning business or a mail order
business
? Businesses that are more geared to
serving other businesses (B2B –
business to business)
? Service businesses
Whether you are retail or not, your decision
regarding location should take account of
business, marketing and image
considerations.
DO YOU NEED A LOGO?
Logos can be powerful images. Think of
the Nike swoosh, the graphic treatment of
the words Coca Cola, and the Volkswagen
symbol.
But does a small business need a logo?
Certainly, a well-designed logo can often
add to your image. As a small business,
you will need to invest in a basic design
language anyway, if only to have business
cards, invoices and letterheads.
Whether you invest specifically in a logo
really depends on what line of business
you are in.
A useful yardstick for deciding whether
you need a logo is whether you have a
brand name. Some of the examples we
looked at earlier – such as The Pine Place
and Tootee-Frootee – would be obvious
candidates for either a unique graphic
symbol or a stylised visualisation of the
name itself.
The chapter on marketing professionals
later tells you what sort of things you
should be looking for when choosing
someone to design your logo.
CASE STUDY
When PC assembler Romak
Computers embarked on a re-
branding exercise, they called in
a copywriter (see Chapter 7: Hired
Guns) to facilitate a brainstorming
session aimed at finding a new
name. The copywriter brought a list
of 30 names to the meeting, and
persuaded the participants to agree
in advance that by the end of the
2-hour allotted timeframe, they
would choose a name. Ten of the
names were struck off because they
were too similar to existing
company names. Ten names were
rejected as unsuitable, and a
further 5 were rejected as not
being special enough. Finally, one
of the 5 remaining names emerged
as everyone’s favourite. The
company chose the name iQon
Technologies, and the very same
day a graphic designer was asked
to work on designs based on the
new name.
Remember that the most creative
name in the world cannot make
up for defective quality or service.
The last thing you want is for
customers to associate your name
with negative experiences.
LOCATION CHECKLIST
1. What are your location options
(shopping mall, shopping area, hotel
district, restaurant district, office
building, town centre, industrial estate,
home, suburbs, village)?
2. What does the area look like?
3. How easy is it to find?
4. Will this location draw the customers
you are looking for?
5. Could this location turn your customers
off?
6. Do you need to provide a map to help
your customers find you?
7. What will customers see and experience
when they visit your business?
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Managing your business > Marketing your business
Working from home
Some small businesses can get away with
being located in the home of the business
owner. There is something very appealing
about swapping the early morning rush
hour for a commute that takes you all the
way from your bedroom to your home
office. However, running your business
from home doesn’t work for everyone and
doesn’t work for every business. Look at
the checklist before you rush to convert
your home into your workplace.
Over 8,000 new home businesses start
every day in America. They even have a
cute name for people who operate from
home. They are called the “Pyjama Set”
(because the myth says that they can work
in their pyjamas until noon or later!).
Locating your business in a small
community has its own advantages.
The smaller customer base means that the
number of potential customers you need to
reach is smaller. Your advertising costs are
usually much less than in the major cities,
and in a small community you can make
an immediate presence.
The downside to being located in a small
community is that unless your market is
not geographically dependent, your
potential market is more restricted.
You can also afford to make fewer
mistakes in a smaller community. In larger
population bases, you can make mistakes
without everyone knowing about it.
WORKING FROM HOME CHECKLIST
1. Is your business suitable for working from home?
2. How will your customers react to a home-based business?
3. Are you able to separate your work space and your living space?
4. Are you the sort of person who needs to interact with others on a daily basis?
5. Have you studied the tax implications of working from home?
6. Is there anything in your lease which forbids certain types of commercial activity on your
premises?
7. Do you have the self-discipline to work from home?
8. What happens when you want to employ staff? Are you mentally prepared for employees
using part of your home like a regular office, including access to bathrooms?
9. What does your family have to say?
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Managing your business > Marketing your business
YOUR POSITIONING STATEMENT
When someone asks you, “So, what do you
do”, you need to be able to respond:
? Clearly
? Concisely
? Convincingly
? Consistently
That’s why you need a positioning statement
that expresses the core message you want all
your communications channels (internal and
external) to deliver.
Try and imagine that every time you meet a
potential customer (face-to-face, on the
phone, via a direct sales letter, through an ad
or PR piece on you in the local media), he or
she is asking you seven basic
questions:
? WHO are you?
? WHAT do you do?
? WHAT market do you serve?
? WHO have you worked with?
? WHAT is so special about your business?
? WHERE can I find you?
? HOW do I initiate business with you?
The better crafted and clearly differentiated
your positioning statement, the faster you can
move your customers along the awareness
continuum to the action stage. Remember,
you don’t always know in advance how much
time you have to make that crucial first
impression, so it’s best to prepare a range of
positioning statements.
Don’t be caught off guard when you’re asked
what you do. A fumbled “Oh I don’t do anything
special” or “That’s a difficult question” just
won’t do. Practice your answer so that it
comes out like a mantra.
Once you have identified your target
market and established an image that suits
your business, you need to develop your
own marketing communications language.
This will enable you to communicate the
real and perceived benefits of your
product, your service or your business to
your potential customers.
The role of your marketing
communications is to shepherd customers
from unawareness to action via five key .
stages:
? STAGE 1: From unawareness to
awareness – becoming aware of your
existence.
? STAGE 2: From awareness to
knowledge – understanding what you
do and what you are offering.
? STAGE 3: From knowledge to
preference – liking what you offer
more than what the competition
offers.
? STAGE 4: From preference to
conviction – deciding to do business
with you.
? STAGE 5: From conviction to action –
performing the purchase act.
In this chapter, we will look at several
distinct layers of your marketing
communications strategy, starting with your
positioning statement and your unique
selling proposition (USP).
5. MARKETING COMMUNICATIONS
EXERCISE
WRITE A ONE-LINE POSITIONING
STATEMENT IN ANSWER TO THE
QUESTION:
WHAT DO YOU DO?
WRITE A ONE-SENTENCE POSITIONING
STATEMENT IN ANSWER TO THE
QUESTION: WHAT DO YOU DO?
STATEMENT
WRITE A ONE-PARAGRAPH
POSITIONING STATEMENT IN ANSWER
TO THE QUESTION:
WHAT DO YOU DO?
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Managing your business > Marketing your business
? You might be a superb furniture-maker
– but so are many other furniture-
makers in your market
Whatever technical skills, innovative
products or creative ideas you possess
will remain a secret unless you let
people know.
Whether your competition is locally,
nationally or even globally based, you need
to find a distinct advantage.
Which is why your business needs its own
Unique Selling Proposition – your USP –
which:
? Communicates a powerful statement
of the uniqueness of your service or
product
Once you have formulated a positioning
statement that you are happy with, make
sure that everyone involved in your
marketing communications, PR and sales
operation is familiar with it. They too have
to be able to answer clearly, concisely,
convincingly and consistently when asked
about your business.
YOUR UNIQUE SELLING
PROPOSITION (USP)
Developing a positioning statement is a
vital first step – but it is not enough:
? You might be a highly qualified
childcarer – but so are many other
childcarers in your market
? You might be a gifted engineer – but
so are many other engineers in your
market
ELEMENT OF UNIQUENESS USP USP TAGLINE
Grocery/convenience store in the
very best location in town.
You have opened a graphic design
studio after 15 years working in
New York with a major graphic
design studio.
Childcare facility.
You run a repair garage, and you
are aware of the bad reputation
of auto repair establishments.
Kitchen table manufacturer.
You are a white goods retailer, and
the products you sell are also
available from your competitors at
a similar price.
Sandwich shop.
You offer ample parking and easy hassle-free
access.
You have won several industry
awards for your work.
You are the only professional who has trained in
a new method of teaching children arithmetic
skills through music.
Your USP is that you promise to undertake a job
only if there is real need.
You use only top quality materials and
workmanship.
You offer very fast delivery and, even if your
competitors offer the same service, you can be
the first to emphasise this particular advantage.
Unlike other sandwich shops, you make your own
sandwiches fresh each day.
Convenience.
Record.
Exclusivity.
Trustworthiness.
Reliability.
Speed
Freshness.
The most convenient
shopping in town.
Effective design from
an award-winning
designer.
The pioneers of
arithmetic teaching
through music.
If Your Car’s OK
We Won’t Fix It.
You’ll still be sitting
at our table 20 years
from now.
Buy today, we’ll
deliver it tonight.
Home-Made
Tastes Better.
DESCRIPTION OF BUSINESS
? Is the essence that runs through your
entire operation
? Projects a message about your
commitment
? Hints at the benefits of working with you
? Sets you apart from your competition
Your USP helps your business to stand out
from the crowd. Differentiate yourself with
something unique and memorable that
helps your customers to remember you
and persuades them to do business with
you.
Here are some examples of how to develop
your USP into a USP tagline that you can
use in your marketing.
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Managing your business > Marketing your business
YOUR MARKETING MESSAGES
Based on your positioning statement, your
USP and your benefits, you can now
formulate the marketing messages that will
attract customers and convince them to work
with you.
If you decide to employ marketing
professionals (see Chapter 7) to help you
conduct your marketing strategy, your
marketing messages will form the basis of the
creative brief you give them. If you decide to
handle your own marketing, your marketing
messages will become a constant theme
running through all your marketing activities.
Remember that your marketing messages
take time to establish themselves in the
minds of your customers. Don’t let
thoughtless communication erode all the
good work.
Once you find a marketing message that works
for you, stay with it. Customers can become
confused if you change messages, so unless it
is imperative, don’t depart from it.
Write down some elements that
differentiate your business.
Now choose the most important element of
uniqueness, and formulate a USP
statement that you can trumpet at every
opportunity.
Remember to expose your customers to
your USP in all advertising material. As an
exercise, write down your USP and your
USP tagline.
Your features and benefits
Whether your business sells a product or a
service, it has both key features (which are
descriptive and factual) and key benefits
(which are emotive).
You should never confuse features and
benefits. Your customers need to know
about the features, but it is the benefits that
will persuade them to make the purchase.
CASE STUDY
In an unguarded moment during an
after-dinner speech that was widely
reported in the media, UK high-
street retail jewellery-chain boss
Gerald Ratner called his company’s
products “crap”. He so offended
customers that within a week, sales
in hundreds of Ratner’s stores
plummeted, share values dried up,
and eventually Ratner himself was
forced out of the company he
founded. His ill-chosen words
destroyed years of developing his
marketing message.
HELPFUL IMAGE UNHELPFUL IMAGE
Sofa
Book store
Childcare facility
Alternative healing
Home-made cakes
Folding kitchen chairs
Air conditioning units
Insurance
Travel company
Wedding dress
Leather upholstery
20,000 books
Qualified staff
Massage bed
Log-shaped
Pine
3-speed power
Comprehensive cover
Linked to 10 major airline booking
systems
Choice of fabrics
Long-lasting
Massive choice
Peace of mind
Calmness
Mouth-watering
Handy
Comfort
Security
Time-saving
Glamour
SITUATION
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Managing your business > Marketing your business
Image messages vs sales messages
We said at the start of this chapter that
your marketing communications must
shepherd customers from unawareness
to action via five key stages.
Stage one was to make customers aware
of your existence, and stage five was to act
upon their conviction and to complete the
purchase act.
When formulating your marketing
messages, distinguish between:
? Image advertising focuses on the
image of your business, and helps
focus attention on your existence
? Sales advertising focuses on closing
the sale on your product or service
Both forms of marketing messages are
legitimate, but you need to be clear which
you want.
MARKETING MESSAGE CHECKLIST
1. What is your positioning
statement?
2. What is your USP?
3. What are your value propositions
(key benefits)?
4. What are the features?
5. Testimonials from satisfied
customers.
6. Information about guarantees,
service, installation, etc.
7. Prices and fees.
8. Payment/credit terms.
9. Ordering information.
EXAMPLE OF IMAGE MESSAGE EXAMPLE OF SALES MESSAGE
Training organisation
Food manufacturer
Travel agency
Printer
Computer-repair workshop
Sign up for our computer
training course
Special offer on our homemade
sausages.
New York weekend for
under £400.
Free business cards when you
order letterheads.
Free home call-out.
TYPE OF BUSINESS
We have worked with bluechip
companies.
Our manufacturing facilities comply
with the highest quality standards.
We look after our customers.
Printer State-of-the-art printing
equipment.
Highly trained maintenance
engineers.
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Managing your business > Marketing your business
? ON-LINE MEDIA
Website
? OUTDOOR & TRANSIT MEDIA
? SALES PROMOTION MEDIA
Packaging
POS (Point of Sale)
Merchandising
Giveaways
Exhibitions and trade shows
A seventh category – word-of-mouth
marketing – is not strictly a medium, and
will be dealt with separately.
Media Mix – Finding the Balance
Once you know the function (and cost) of
the alternative media options, you can start
developing a media mix: a combination of
marketing activities tailored to your target
audience and to your budget in order to
achieve your marketing strategy.
The secret of a successful marketing mix
can be summed up in the 4 Ms formula:
Match your Message to your Market using
the right Medium.
As you ponder which communication
activity to use, remember that your
customers are being bombarded with
hundreds if not thousands of advertising
messages every day.
These messages are hitting them from
many different sources, so it is smart to
spread your messages among more than
one single advertising activity.
One thing you can be sure of: you will
never use every media option (even if you
could afford them all!) to market your
business, because certain media are
suitable for some markets and not for
others.
INTRODUCTION TO THE MEDIA
In previous chapters, you determined who
your target markets are, what image you
want to project, and what marketing
messages you wish to employ to reach
your prospective customers.
Now comes the key decision-making
moment: Which media to use?
This chapter explores the various
advertising and marketing media that serve
as communication vehicles to deliver your
marketing message to your target market.
Before you can make an informed choice,
you do need to know what is available out
here and to gauge which media will work
most effectively for your business.
The marketing literature offers a confusing
array of different buzzwords to define the
advertising and marketing media. These
concepts are not always terribly useful
when you need to decide which media to
use in your marketing strategy.
Thus, to simplify the picture, we have
divided the media into six main categories:
? PRINT MEDIA
Business cards
Brochures, flyers, circulars
Direct mail letter
Newspaper and magazine
advertisements
? PUBLIC RELATIONS (PR)
Media releases
Newsletters
Sponsorship
? BROADCAST MEDIA
Radio
Cinema
TV
6. MARKETING MEDIA
Just as you don’t need to use every media,
don’t be tempted to rely on just one
medium.
Think of your marketing media as a toolbox
containing a choice of ways that promote
your business. At different times, for
different occasions, and for different target
audiences, choose the combination of
media you feel are most effective.
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Managing your business > Marketing your business
The marketing budget
There is no magic formula for determining
your overall marketing budget. In the
opening chapter, we said that marketing
should not be regarded as an expense, but
as a financial investment. You invest in
marketing, and your customers are your
ROI (return on investment).
It is really a question of balance. At every
stage of your business development, you
need to assess how much you must
allocate to your marketing budget. It is not
just a question of what you can afford. It is
more a question of what you have to
spend in order to expose your business to
your target market. Becoming aware of the
different media options, as well as non-
media options, such as word-of-mouth, is
the first stage. When you have assessed
which media mix is the most effective for
your particular business, then you can find
out how much this costs, and try and build
this into your budget.
Small businesses, in particular, by
definition, will have limited resources.
The trick is to creatively weigh up where
you spend your money. That is why it
is so important to track your marketing
performance and results. Whatever your
line of business, find a mechanism that
allows you to monitor how your customers
found out about you. Unless you know
that, you will never know whether your
particular media mix really works.
EXAMPLE 1:
If you open a fashion boutique and
your target market is teenagers in
the 12-17 age bracket, you are
unlikely to reach them by
advertising on a classical music
programme on the radio.
If, however, you open a book and
record store with a large classical
music range, you may well choose to
advertise on the classical music
programme.
EXAMPLE 2:
If you open an engineering business
specialising in building prototypes
for industry, you are unlikely to
reach you target market by
sponsoring the local amateur theatre
production.
If, however, you open a drama
school, you may well choose to place
an ad in the programme.
CASE STUDY
John had a small accounting
business, and wanted to increase his
exposure in the local media.
He made a £5,000 donation to a
local charity’s annual gala
fundraiser, in the hope that this
would make a great news story.
His gesture was greatly appreciated
by the charity, and indeed he gained
one brief story and photo in the
local paper. But for this moment of
glory, John had blown away his
annual marketing budget.
If John’s goal was to be a
philanthropist, his donation made
sense. But since his goal was to
drive his business by attracting
positive media exposure, he could
have spent the money more wisely
on a more diversified marketing and
PR programme.
MEDIA MIX CHECKLIST
1. What role will each component of the media mix play in your
total marketing effort?
2. On what do you base your decision to choose this particular mix of media?
3. Does each medium reach your intended audience?
4. Have you got the balance right?
5. Are you trying to do too much with too few resources?
6. Are you trying to reach non-essential targets?
7. Have you looked at cheaper alternatives?
8. Do you want to use the same media as your competitors?
9. Are you creating sufficient differentiation from your competitors?
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Managing your business > Marketing your business
Here are some creative ways of using your
business cards:
? Add a business card to every single
bill you pay. The cost is minimal, and
you never know who is on the
receiving end at the electricity
company, phone company, insurance
company, credit card company,
stationery supplier or professional
association
? Hand-deliver your card to every house
within walking distance of your home
and office. It’s only natural for people
to want to know what their neighbours
do, and you never know who they
know
? Pin your card on free community
boards in supermarkets, colleges and
libraries
Don’t forget that your business card has
two sides! Use the reverse side to your
advantage – a slogan, a quotation, details
of your range of products/services, a
calendar, emergency phone numbers, or
anything else that could spark extra interest
in your business.
BUSINESS CARDS
The minimum requirement of any small
business is to have business cards.
Your business card has a multitude of
useful functions:
? Provides core information on your
business
? Projects your business image
? Leaves a reminder when you’re not
there
? Serves as a referral tool
Your business card could be your most
valuable marketing tool. Take them with
you everywhere, hand them out generously,
and you never know – the next card you
give out could bring you your biggest
customer yet.
Remember that your official job title is less
important than a description of what you
do:
? “Assertiveness and confidence
building trainer” is more informative
than “Trainer”
? “Expert in designing engineering
prototypes” is more informative than
“Engineer”
6(I) PRINT MEDIA
BUSINESS CARD CHECKLIST
1. Look at all the business cards
you have collected . which ones
stand out?
2. If you have a logo, can it be
reproduced in the business card
format?
3. Put the most important
information at the top.
4. Don’t forget your full contact
details, including dialling code.
5. Don’t forget your mobile phone
number.
6. Use a business slogan, if you
have one.
7. Is it appropriate to have your
photo or a caricature of you on
the card?
8. Do you want to add the logo of
a professional organisation you
belong to?
9. Will colour add to your message?
10. Use a good quality heavy card
for extra durability.
11. Consider using an alternative
material to paper/card, such as
plastic, cork, wood, and so on.
12. Don’t try and cram in too much
information.
13. Make sure the information is
easy to read.
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BROCHURES, FLYERS, CIRCULARS
A brochure is a business tool that talks
about the business when you’re not there.
Your brochure explains what your business
is all about and how your product or
service can be of benefit. And like ads,
brochures can be either image-based or
sales-based.
Before you rush off and have a brochure
made, there are some questions to ask:
? Why do you need a brochure?
? Who is the brochure aimed at?
? How will the brochure reach your
target market?
? Will a brochure convince your target
market to do business with you?
Here is an example (right) of a brochure
text from a venture management company
that wished to set out its stall for the
benefit of potential customers. The
brochure is neither too long nor too short –
it addresses a particular niche market, it
presents its marketing messages concisely,
and it avoids unnecessary waffle.
Flyers or circulars are a useful and low-
cost way of highlighting special offers,
sales, new product announcements and
the like. The best place to display flyers
and circulars is in non-competitive
locations where customers can pick them
up (such as your chamber of commerce)
or where they can see them (on bulletin
boards).
PRIME MODE
Hands-on management consultancy services to help grow your venture.
Prime Mode - a management consultancy company
Prime Mode is a management consultancy company that provides small to large enterprises in
diverse industries with hands-on services to help grow their ventures.
Prime Mode works side-by-side with enterprises to rapidly meet and exceed their priority
objectives and to help them reach “Prime Mode”. We achieve this by using our signature
results-based methodology that provides timely, performance-based and dedicated services
powered by a world-class team with multi-sector global experience.
We help companies access markets and launch new initiatives, and we work closely with
venture capitalists in due diligence and in managing portfolio ventures.
Our ventures
Prime Mode works with companies that have a proven track record, the potential for
compelling value creation, and a strong fit with our proactive hands-on style. Ventures at
various stages of design and delivery include:
? Setting up European business development for a fast-growing US-based
pharmaceutical company.
? Helping an Irish software company penetrate the European market.
? Licensing an Irish online fraud detection and prevention technology into the UK.
? Launching a credit card for the youth market in Europe.
? Designing an in-house innovation engine for a major PC manufacturer.
? Conducting due diligence for a blue-chip venturing arm.
Our key differentiators
? Multi-sector international experience.
? Our vast global network, including Wharton Business School and its alumni.
? Superb operational and execution skills.
? We access and mobilise the highest calibre of practising and seasoned professionals.
? Expediting time to market.
? We are in for the long-term.
Our team
The Prime Mode team includes specialists in engineering, innovation, business development,
project management, marketing, finance, operations, systems integration, outsourcing,
licensing, and human resources. The breadth of our capabilities enables us to add value to
the “old” and “new” economies, across multiple industries.
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Managing your business > Marketing your business
DIRECT MAIL
Direct mail is used when you wish to target
a specific, named individual. Whether you
are sending a direct mailer to one person
or one thousand, you have to be sure that
you are crystal clear in your message.
Look at the checklist, and incorporate all
the elements into your letter. The best
advice is to get a professional to write the
text and the accompanying letter.
Remember, direct mail pieces can be in
letter form, or in the form of response
coupons, envelopes or other innovative
formats.
ADVERTISEMENTS
Print ads are published in a variety of
formats: local newspapers, national press,
free newspapers, trade publications, local/
national consumer magazines, and
programmes (sports, cultural).
The cardinal rule with print ads is: Don’t
confuse ego with effectiveness! There is
only ever one justification for spending
your hard-earned cash on a print ad –
that it reaches your target market. Your ad
must effectively deliver your marketing
message and bring in the customers. You
must avoid other reasons, such as:
? You like seeing yourself/your business
in print
? You want to impress your family and
friends
? You want to do a favour to the owner
of the publication
Too many small businesses instinctively
believe that the best way to advertise their
existence is by running an ad in a local
newspaper. Newspaper advertising can be
the right solution, but it is not the only
solution, nor necessarily the best solution.
BROCHURE CHECKLIST
1. Collect brochures from other
companies, see what you
like/don’t like, and tell your
designer.
2. Hire a professional writer to
write your brochure.
3. Make sure your USP is reflected
powerfully.
4. Your headline must cause
enough interest to make the
reader want to read further.
5. Don’t be scared of long
headlines.
6. Make liberal use of subheadings
throughout the document.
7. Use as little or as much text
needed to tell your story.
8. Keep the tone enthusiastic.
9. Use testimonials.
10.Keep sentences and paragraphs
short.
11.Your logo alone can appear on
the front cover.
12.Your logo and company details
should appear on the back.
13.Always proofread your brochure
before printing.
14.Reread the brochure and see
whether you as a customer
would be attracted by what it
says.
15.Test the text with some
potential customers.
DIRECT MAIL CHECKLIST
1. Use an opening headline that
grabs the reader’s attention.
2. Identify the reader’s problem,
generate a “That’s exactly how
I feel” response.
3. Tell the reader that you can solve
their problem.
4. Convince the reader you have the
credentials and the experience to
provide the solution.
5. Detail the benefits your reader
will gain from your product or
service.
6. Introduce testimonials from
satisfied customers.
7. Make the reader feel that he or
she is missing out by not using
your product or service.
8. Guarantee money-back
satisfaction.
9. Spell out what the reader should
do to contact you or to order
your product/service.
10.Add a PS – they always get
noticed.
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Managing your business > Marketing your business
Here is an example of how a small firm of
solicitors used the local newspaper
because they were short, clearly focused,
effectively to put across their marketing
messages. These are four of a series of
ads that was part of an awareness
campaign for Morgan & Morris Solicitors
(the name is fictitious, the ads are real).
Note how the headlines are designed to
attract initial attention, while the short text
tells readers in a nutshell why they should
come and pay a visit to Morgan & Morris.
The ads achieved maximum impact
because they were short, clearly focused,
and invited immediate action –
“call in today”.
Far right is an example of an ad from a
small supermarket. It contains a whole
string of sales messages that are designed
to attract the attention of shoppers thinking
of doing their christmas shopping.
Many local newspapers offer a special
price for 1-, 2- or 3-page announcements
for new launches, new management, new
staff, new service, new location,
renovation, and so on. The way it works is
that the publication gives you editorial
space, and you ask your friends, business
colleagues, suppliers and major customers
to cover the cost of the page by taking an
advertisement.
Be careful. It is tempting to do this, but
the question must be like before: is this
for your ego or will it be effective?
Don’t accept the print media price lists as
definitive. You will usually be able to
negotiate a better deal with local
newspapers. If you find them too
expensive and too inflexible, threaten to
move your advertising to rival publications.
IT’S GOOD TO HAVE THE PROFESSIONALS
ON YOUR SIDE
Whether you need advice in property law,
business law, personal injuries, family law or
wills, you want to be reassured that your
needs are fully understood. That’s why you can
rely on the experience of the professionals at
Morgan & Morris. Our team of skilled solicitors
and support personnel is here to offer you
sound and sensible advice. Come in and talk
to us.
LEGAL ADVICE WITHOUT THE TRAUMA
Seeking legal advice can be a traumatic
experience. That’s why it’s good to rely on the
professionals at Morgan & Morris. Whether you
want help with property law, business law,
personal injuries, family law or wills, our team
of skilled solicitors and support personnel is
here to offer you sound, sensitive advice.
Come in for a chat.
PROPERLY TRANSACTED PROPERTY
TRANSACTIONS
When it comes to buying, selling, renting or
leasing property, you need to be sure that
you’re getting sound legal advice. That’s why
you should talk to the professionals at Morgan
& Morris. Our team of skilled solicitors and
support personnel will advise you on
conveyancing and all other aspects of
property transactions.
YOUR FAMILY WILL THANK YOU WHEN
YOU’RE NO LONGER AROUND
Neglecting to make a Will can cause your
family unnecessary hassle. The responsible
way to settle your estate is to make a Will
now. Call in today to Morgan & Morris, and ask
our team of skilled solicitors and support
personnel to help you draw up your Will. Your
family will thank you when you’re no longer
around.
WHATEVER YOU NEED FOR
CHRISTMAS, YOU’RE SURE TO FIND
IT AT MORGANS
You’ll love our turkeys, hams, spiced
beef and everything else for those
special seasonal recipes.
You’ll love our fresh beef, lamb and
pork products, as well as our
mouthwatering sausages.
You’ll love our huge selection of wines,
beers and spirits in our off license –
look for superb value labels from
Spain, Argentina and Chile.
You’ll love our glorious choice of
confectionery items at cost price –
that’s right, cost price!
You’ll love our colourful fruit and veg
displays, our magnificent deli section,
top value groceries, babycare products
and household items.
You’ll love our Christmas cakes that add
such fun to your Christmas meals.
You’ll love our Gift Vouchers from £5 to
£50, the perfect thank-you gift and
stocking-filler.
Morgans – taking the hassle out of
christmas shopping.
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Managing your business > Marketing your business
Ads in Yellow Pages and other
directories
Some questions to ask yourself:
? Should you advertise in the Yellow
Pages?
? How big should your ad be?
? In which category(ies) should you
advertise?
? In which editions of Yellow Pages
should you advertise?
? Does your target market use Yellow
Pages to look for your type of service?
There is no straightforward answer to these
questions. Some businesses will tell you
that their Yellow Pages ad generates a
sizeable proportion of their custom. Others
will tell you that the Yellow Pages is a
waste of money. Your problem is
discovering whether Yellow Pages is an
effective option for you and for your type of
business.
For some honest feedback, look in the
Yellow Pages of an area far from your own,
where you pose no competition. Phone
some of the bigger advertisers in your
category, and ask the owners whether the
expense justifies the results.
Another thing to be wary of . think
realistically before you pay for insertions
outside your area. The deals you may be
offered may be tempting, but there is no
point being in any edition that does not
reach – and is not read by – your target
market.
CASE STUDY
Jason had worked as a copywriter
(the person who writes the words of
advertising) for an international
advertising agency, and was setting up
as a freelance copywriter.
He assumed that the Yellow Pages was
the place to advertise. However, there
was no Copywriters category. The sales
rep soothingly suggested Copyright
Agents & Consultants – but he was only
displaying his ignorance, since
copywriting has nothing to do with
copyright. The rep then suggested
Advertising Agencies – but Jason was
not an ad agency. The rep suggested
Editing Services, Word Processing,
Graphic Designers and Design & Image
Consultants – but none of these are
copywriting either.
In the end, Jason placed much less
expensive ads in two media directories
that had a Copywriters category.
CASE STUDY
Sophie owned an accountancy and tax
consultants office in a small town.
She was approached by the sales rep of
a major Sunday newspaper that was
planning a county supplement. At first,
Sophie was very excited at the prospect
of national exposure for her business,
especially since they promised to
publish her photo together with
editorial information.
When she asked her marketing
consultant for advice, he asked her a
series of questions: “How big is the
circulation of the paper inside the
county? How many of the potential
customers in the county read this
paper? How many people outside the
county will read the special
supplement? How many people inside
or outside the county will realistically
decide to move their business to Sophie
as a result of seeing her photo in the
supplement?”
A chastened Sophie realised that the
temptation to spend money on an ad in
the supplement was based on ego, not
on a realistic assessment of how many
new customers the ad would draw.
PRINT AD CHECKLIST
1. Does the publication reach sufficient numbers of your target market?
2. Will your ad stand out among the clutter?
3. Can you afford to run a series of ads?
4. Have you used a bold headline that grabs attention and tells your reader that you
can help them?
5. Have you given enough attention to the content?
6. Have you told your readers exactly what you are offering them?
7. Is there enough emphasis on the benefits of your product/service?
8. Have you told them how others (and which others) have benefited?
9. Have you told them what they must do to obtain what you offer?
10.Have you made it easy for them to find you/contact you?
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Managing your business > Marketing your business
Solution
Stick to your core area of competence. If you don’t want unprofessional
writing, let a professional writer write your ad, brochure and other
print media.
Unless you want wasted time, costly rewrites and redesigns, you should
appoint a senior decision-maker within your organisation (this could be
yourself) to be involved in the project from the very beginning.
Remember that less is very often more. The function of most brochures
is not to sell, but to generate interest and to get potential clients to
contact you. Keep the text simple, compact and relevant.
Off-the-shelf software can make you believe that you are a
real designer, but you might end up with an uninspiring
design that undermines your image.
SOME COMMON ERRORS WHEN PLANNING YOUR PRINT MEDIA
PRINT MEDIA CHECKLIST
Error
Trying to write your own material.
Allocating responsibility for the
brochure/website project to someone too
junior.
Trying to cram as much information as
possible into the brochure.
Saving money by using a desktop publishing
software programme.
Form of advertising
Business cards
Ad in local newspapers
Ad in national press
Ad in trade publication
Ad in free newspapers
Ad in consumer magazines
Ad in programmes
(sports, cultural)
Ad in Yellow Pages
and other directories
Sales brochures
Flyers and handouts
Direct mail letter
OTHER
Why is this
appropriate for
your business?
Why is this not
appropriate for
your business?
How will you
measure the
effectiveness of
this ad?
What do you want to
achieve from this
ad?
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Managing your business > Marketing your business
A big advantage of PR is that it costs
much less than paid-for advertising. For
small businesses, one of the best vehicles
for spreading the word about your
business is the local media – newspapers
and radio. Editors welcome news of local
interest. If you can provide them with
something newsworthy, there is a good
chance that they will print it or broadcast it
– which will add to your public profile and
widen the number of people exposed to
your business. As the case study shows, a
local story can sometimes become a
national story.
You need to distinguish between proactive
PR (deliberately and consciously setting
out to make your business well known and
well liked) and passive PR, where people
get to like your business without you
having to do anything specific to
encourage them. We return to passive PR
in Chapter 8.
The goals of PR are:
? To build a relationship with the public
? To mould a positive opinion about you
and your business
? To bolster your image
? To get you noticed by potential
customers
? To make existing customers feel good
that they work with you
In addition to targeting your existing and
future customers, PR is also aimed at:
? The local and national business
community
? Local and national media
? Your suppliers
? Local government
? Financial institutions
? Trade organisations
? Your competitors
? Your own staff (“internal PR”)
Good PR also impacts on the people within
your organisation. It reinforces their
motivation and pride to be working with a
successful company like yours.
6(II) PR (PUBLIC RELATIONS)
CASE STUDY
Joe ran an auctioneering and
property business, and was given
the exclusive rights by a builder to
sell a new 50-home estate.
On the morning that the sale of
Phase I commenced, Joe found
huge crowds outside his office. To
alleviate the crush, he placed some
benches out on the pavement, and
ordered tea and sandwiches to be
given to all those waiting. Sensing
a media opportunity, he invited a
freelance press photographer to
record the unusual scene. Several
major national papers featured the
photo and the story, and suddenly
the whole country knew about Joe
and his business.
This had two important PR
consequences. Joe’s standing in
the local business community was
enhanced, and builders in other
counties approached Joe to use his
flair to sell their properties.
EXAMPLE OF GOOD PR:
You run a PC repair business, and you
manage to rebuild some discarded PCs,
which you donate to a local school for
handicapped children.
If you deliberately publicise this, the
publicity surrounding your generous deed
can generate positive publicity for your
business.
EXAMPLE OF BAD PR:
If one of your staff left your business and
cited racial harassment as the reason, the
publicity surrounding the claim could have
a negative impact on your business – even
if the claim is totally unfounded.
You will find it harder to recruit staff, and
some of your customers may wish to take
their custom elsewhere.
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Managing your business > Marketing your business
read it, check off how the basic ingredients
were incorporated to persuade editors of
the professional media that this was an
important story.
PUBLIC SPEAKING
If you can overcome your fear of public
speaking, there are some valuable PR
rewards awaiting you. Business and civic
organisations are always looking for
speakers for their meetings, and you can
cultivate a reputation as someone willing to
talk about your area of expertise. Offer to:
? Give a seminar
? Open a school trade fair
? Give a welcome speech to a foreign
trade delegation or visiting dignitary
? Deliver a report to a franchisees
meeting
ARTICLES
Newspapers and other publications often
welcome articles containing helpful tips.
Submit a simple problem/solution-style
article, a how-to article or a free advice
article related to your product or service.
State the problem, and then share some
insightful tips. At the end of each article,
include an identifier paragraph listing your
name, company, what you do and your
contact details. This will allow readers to
contact you for more information about
your services.
MEDIA RELEASE
Once you have found an angle for your
story, you need a media release that will
prompt the media to use it. Basically, a
media release is a pseudo-news story that
highlights something newsworthy about
your business in a language familiar to the
journalist.
Editors judge an item to be newsworthy if
they believe that their readers or listeners
will find it interesting, useful, entertaining –
or better still, all three.
Once you establish a reputation for
credibility with the local media, you will
find that they use a well-written media
release with almost no changes.
Remember that the media often needs you
as much as you need them. They need to
fill editorial space in their newspaper/
magazine, you can make their job easier.
The secret about getting a story into the
local media is to think like an editor. Ask
yourself:
? What can I write that will make this
story more useful to editors?
? How can I deliver my story in a
professional, courteous way?
Using your media release as the basis for
a story or news item is not the only thing
that editors can do. They can also decide
to send a reporter to interview you. An
interview with you in the paper or on radio
will further promote your public image.
There are several basic ingredients that
will improve the chances of your media
release generating positive publicity for
your business. The media release on the
next page was sent by iQon Technologies
to the professional/trade media. As you
OPPORTUNITIES FOR GETTING A
STORY IN THE LOCAL MEDIA
Ask yourself whether any of the
following apply to your business:
? Are you using a new or unusual
technology, procedure or
technique?
? Are you offering something
unique that no one else is
offering?
? Do you have something
controversial to say about your
market/industry?
? Do you have something
provocative to say about the local
business community?
? Do you have any special tips for
consumers?
? Can you offer any special insight
on a hot media topic?
? Have you won a big, complex or
unusual project?
? Are you involved in any charity,
school or other worthy
community organisation?
? Are you celebrating any special
anniversary (for example, “First
year in business”)?
? Have you taken on any new senior
personnel?
? Have you moved into
new/renovated premises?
? Have you won any professional
award?
? Have you launched a new product
line?
? Have you received a major export
order?
? Have you given a speech
locally/nationally/internationally?
What other opportunities are there
for getting your business
mentioned in the local media?
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Managing your business > Marketing your business
MEDIA RELEASE – SEPTEMBER 5 2002
iQon Technologies, Ireland’s number 1 Indigenous PC Manufacturer, launches new “Multimedia by Philips” X Series
Designer PC range.
iQon Technologies, Ireland’s largest indigenous computer manufacturer and the second largest supplier of consumer PCs
and laptops in Ireland, today launched the Multimedia by Philips X Series range of designer PCs.
Developed in conjunction with Philips Electronics, the X series represents a new concept aimed at bridging the design
gap between PCs and the latest consumer electronics products. Manufactured in a contemporary chrome and ivory
finish, the X series has its design foundations in a new monitor developed and launched by the Philips Consumer
Electronics team in Q1 of this year.
The design of the new X series is driven by a greater focus on the user’s overall audio and visual experience. Among the
new technologies incorporated into the X series are Real Flat CRT displays, Optical Mice, Dolby Digital surround sound
and DVD recorder drives.
iQon Technologies are the exclusive European manufacturers of the “Multimedia by Philips” PC range that was co-
developed with Philips Electronics in 1989. Multimedia by Philips is now the second-biggest selling consumer PC in
Ireland, and is rapidly gaining significant market share in the UK via iQon’s retail partner, the Argos Retail Group.
The launch of the X series comes just weeks after iQon Technologies moved into its new 32,000 sq.ft production and
distribution facility in Dundalk, which has tripled the company’s capacity. Two major brands are manufactured in the
Dundalk facility: the iQon brand, which includes Qompanion notebooks, Qonnect workstations and Qommand servers;
and the Multimedia by Philips brand of PCs.
iQon products are available via a nationwide network of independent resellers/dealers, as well as through retail chains
including Shop Electric, ESB, Electric World and others.
IQon products are delivered directly by iQon of behalf of these retail chains, and backed by a nationwide technical
support structure. The Multimedia by Philips X Series will be available from iQon retailers and resellers nationwide from
7 September 2002.
Ciaran O’Donoghue, head of sales and marketing: “Working with a company with the high profile of Philips, a
recognised global leader in consumer electronics design, was of undoubted value in the development of our exciting
new X series. With the PC becoming increasingly integrated into the fabric of everyday household life, particularly with
the advent of broadband and wireless technology, we see PCs as ultimately evolving in the same design-driven direction
as other consumer electronics products have done in recent years.”
For further information, please contact Ciaran O’Donoghue at 042 9327270.
Reproduced courtesy of iQon Technologies
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Managing your business > Marketing your business
INGREDIENT INGREDIENT iQON MEDIA RELEASE
Date
Catchy headline
Opening paragraph
Expand the story
Use third-person
Refrain from using
too many superlatives
Background paragraph
Secondary information
Quote
Contact details
If you don’t put the date, editors
won’t know whether the story is out
of date.
You will need a headline that
immediately appeals to a busy
editor.
Not more than 2 sentences – must
contain the entire story in a
nutshell, and must make it
worthwhile reading on.
Focus on the main story that is the
subject of the media release.
“The company plans” rather than
“we plan”.
The editor must be able to
distinguish real news from
promotional spin.
At least one paragraph must give
your story background and context.
Mention other important
information and anything else that
portrays your business in a positive
light.
Quote yourself, a senior partner/
employee, a major client, or anyone
else whose comments carry weight.
Name and phone number/email of
contact person.
When editors see the date and the word “today” in
the opening paragraph, they know that this is hot
news.
Includes: company name, something about the
company’s achievement, name of the new product,
and one of the world’s most recognised brand names
(Philips).
If you only read paragraph #1, you know what this is
all about.
Paragraphs #2 and #3 give more details about the
new range of designer PCs being launched.
The whole media release, except the quote, is
written in an impartial and objective journalistic
style.
Words like “fantastic”, “brilliant” and “amazing” that
were used in the advertising for this range have
been dropped.
Paragraphs #4 and #5 explain something about the
company, its production capacity, its success until
now, and the all-important Philips connection.
Paragraph #6 provides information on availability.
This quote from the head of sales and marketing is a
legitimate excuse to promote the company and even
hint at the company’s vision.
If editors want more information, they know exactly
whom to contact.
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Managing your business > Marketing your business
TRADE PR
Your PR efforts need not be exclusively
targeted at the local (or national) media. It
might also make sense for your business to
cultivate the editors of industry and trade
publications. For example, if you have a craft
business, and you have a story to tell, make
yourself known to the editors of whatever
publications speak to your particular market.
NEWSLETTERS
A newsletter can be:
? A great promotional tool
? A valuable source of information for your
customers
? Relatively inexpensive to produce
? A way of making your company look
bigger than it really is
A newsletter allows you to show off about your
business in a legitimate way, and allows you
to feature any aspect of your business that
you want to push. The newsletter is halfway
between a brochure and a media release,
and gives you more flexibility than either.
Even one-person companies can produce a
newsletter – it doesn’t have to be longer than
two sides of A4.
There is little point sending out newsletters on
a haphazard basis. You must adopt a regular
publication schedule, which is normally at
least twice a year, but can also be quarterly or
even monthly. The whole idea of a newsletter
is to remind customers and potential
customers that your business is alive and
kicking.
If you don’t stick to a regular schedule, you
could be sending out precisely the opposite
message.
When you produce PR material – media
releases, articles, radio interview
transcripts, speeches, and so on – make
sure you exploit them (see checklist
below).
EXAMPLE 1:
If you run a small animal clinic, you
might write about “Ten Ways to Help
Your Pets at Christmas-time”.
EXAMPLE 2:
If you manufacture tables, you
might write about “Ten Tips on
Furniture Care”.
EXPLOITING MEDIA MENTIONS
CHECKLIST
1. Distribute copies to your customers.
2. Distribute copies to your bank manager.
3. Distribute copies to other interested
parties.
4. Distribute copies to your staff.
5. Highlight a particularly complimentary
comment or phrase.
6. Include a copy with every invoice.
7. Post a copy on your website.
8. Include a copy in any media
kit/presentation folder.
9. Frame a copy for the waiting area of
your business.
10.Frame a copy in your office.
CASE STUDY
Mona went to her local bank to request a
short-term bridging loan to tide her over a
temporary liquidity problem in her graphic
design business.
Her bank manager rummaged through her
file and found a copy of 2 articles from the
local press that she had forwarded to him.
“I see that you won a big contract from the
Chamber of Commerce,” he said, “and I see
that you gave a seminar to the Empowering
Women in Business network. I’m glad your
business is thriving.”
By keeping her bank in the PR loop, Mona
had created a favourable environment for
her business. When she needed something
from the bank, the positive media image
proved very useful indeed.
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Managing your business > Marketing your business
If you do intend to produce a regular
newsletter for your business, remember:
Advantages
? Ideal vehicle for addressing external
(customers, suppliers, general public)
and internal (employees) audiences
? Allows you to speak less formally to
your readers, scope for humour
? Gives you the opportunity to profile
leading clients
? Useful way of announcing new orders
Disadvantages
? Someone in the company must be
designated as being responsible for
collating the material and co-
ordinating with the copywriter and
designer
? Chatty style could be
counterproductive, you could be
perceived as being not serious enough
? You must publish at least twice a year,
otherwise there is no continuity
? You must have something fresh and
interesting to say in each issue
NEWSLETTER CHECKLIST
1. Most business owners do not find
the time to produce the
newsletter themselves.
2. Asking someone else within the
organisation often means that
the job never gets done.
3. The best solution is to hire a
writer to write your newsletter.
4. Keep the content interesting and
informative.
5. Give readers something of value
(business tips, humour, special
offer).
6. Encourage feedback (contests,
letters to the editor).
7. Avoid too much text.
8. Use plenty of visual material
(photos, charts).
9. Use an easy-to-read typeface
size.
10.Use a conversational, personal
style of writing.
PR CHECKLIST
Form of advertising
Press releases
Newsletters
Seminars at professional
events
Guest speaker (Chamber)
Sports sponsorship
Cultural sponsorship
Event sponsorship
OTHER
Why is this
appropriate for
your business?
Why is this not
appropriate for
your business?
What do you want to
achieve from this for
of PR?
How will you
measure the
effectiveness
of this ?
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Radio advertising extends beyond radio
ads. Most local stations offer plenty of
sponsorship opportunities:
? The local business news is brought to
you courtesy of …
? Lunchtime favourites are brought to you
courtesy of …
? The weather forecast is brought to
courtesy of …
These sponsored messages can be ideal
for a service business looking or greater
name recognition and public profile.
Enquire at your local station to see what
deals are available.
CINEMA
Like radio advertising, cinema advertising
can often be neglected by small
businesses. The advent of multiplex
cinemas means that there are now more
opportunities to get your message across
to cinema audiences. Cinema advertising
is not cheap, but it is nothing like as
expensive as TV.
Naturally, cinema advertising – like any
advertising medium – is only suitable for
particular target markets. Cinemas attract
mainly younger audiences. If these are the
people you want to reach, then cinema
advertising may make sense.
RADIO
You probably listen to the radio more often
than you think. In your car, at home, at
work. And if you listen to the radio, many
of your customers do too. Radio
advertising has the potential to reach a lot
of people, and as long as they are the
people you are interested in, you can use
well-written highly-focused radio ads to
your advantage.
Successful and effective radio ads need:
? A strong introduction
? A good offer
? A clear and concise description of the
benefits
? Conversational tone – remember that
the words on paper have to be spoken
? Simplicity – the listener must absorb
every word with minimum effort
? A call to action
Often, radio can be used to support your
advertising in another medium. For
example, “Answer the questions in the
special coupon in your local paper, and
you can win a free weekend in Paris”.
6(III) BROADCAST MEDIA RADIO
RADIO CHECKLIST
1. Is your product or service
suitable for radio advertising?
2. Does your product require a
visual demonstration?
3. Can your product or service be
described in 30 seconds?
4. Can you use radio to generate
leads?
5. Can you use radio to persuade
people to call you (free
information, free estimate,
free sample)?
6. Is your budget big enough to
afford a sustained radio
campaign?
CASE STUDY
Patricia runs a book and record
store. She knows that each
Christmas, crowds of kids (and their
parents) are going to flock to the
local cinema to see the latest Lord
of the Rings and Harry Potter
movies. Patricia books a 3-month
slot at her local cineplex, covering
the period early November to early
February. In her 60-second cinema
commercial, she informs audiences
eagerly waiting to watch the movies
that she carries a large range of
Lord of the Rings and Harry Potter
books, CDs, DVDs, videos and other
merchandising. Her message is
hitting her target audience just at
the point when their attention is at
a peak.
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Managing your business > Marketing your business
TV
TV advertising is usually too expensive for
small businesses to afford. However, with
the growing fragmentation of satellite and
cable TV, there may be opportunities in
niche markets.
A cut-price alternative to TV advertising is
free TV advertising! If you can find an
angle that TV editors could regard as
newsworthy, you might gain valuable PR
for your business.
CASE STUDY
An internationally famous pop star visited Israel several years ago to
give a concert. Over the weekend, he asked to go to a toy store. All
the media followed him to a toy store near his hotel. The entire
country soon discovered in which toy store the pop star spent $3,000
in half an hour. For years afterwards, the store owner had the TV
coverage of the visit playing on closed loop video in the store.
BROADCAST MEDIA CHECKLIST
Form of advert
Local radio
National radio
TV
Cinema
OTHER
Why is this
appropriate for
your business?
Why is this not
appropriate for
your business?
What do you want to
achieve from this
advert?
How will you
measure the
effectiveness
of this advert?
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Managing your business > Marketing your business
Reasons for not having a website include:
? Your customers don’t use the web
? Expense of creating the site
? Expense of maintaining the site
? Expense of updating the site
There are some key questions you must
ask yourself before pouring a small fortune
into establishing an e-presence:
? Will my customers consider that I am
not a serious business unless I have a
site?
? Am I jumping on the website
bandwagon because everyone else is?
? Will my business genuinely benefit
from having my own site?
? Will my site be cost-effective?
? Is my type of business suitable for a
web presence?
? Will I be able to update it regularly?
? Will my prospective customers look for
me on the web?
? Do my customers use the web?
? Do my customers expect to find
information on this kind of
product/service on the web?
? Will I use my website for information,
sales, or both?
There has never been a faster growing
marketing tool than the Internet.
Email is no longer a novelty, and today very
few businesses have failed to recognise
the speed and convenience benefits of
being able to send and receive emails.
Most email users are also familiar with the
World Wide Web, the millions of websites
out there in cyberspace. Anyone with a
business knows enough by now about the
web to ask themselves whether they
should have their own website.
The advantages of having your own
website include:
? It provides information on your
business 24 hours a day
? You don’t have to be on the other
end of a phone line if a prospective
customer wants to know more
about you
? It can help you attract new customers
? It can help you support existing
customers
? It allows you to sell your product/
service via electronic commerce
(ecommerce)
? It lowers your operating costs:
information dissemination, reaching
clients, servicing clients, selling
6(IV) ON-LINE MEDIA
NUMBER OF YEARS TO REACH
50 MILLION
RADIO
30 years to attract 50 million
listeners.
TV
13 years to attract 50 million
viewers.
INTERNET
5 years to attract 50 million users.
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Managing your business > Marketing your business
It is also very important to develop links
with other websites, whereby information
on your business appears on other
websites, and your website hosts
information on other websites.
When you are giving the design company
your brief for your website, make sure you
bear in mind the following facts about
online users:
? They appreciate good, clear design
? They seek helpful content
? They scan the screen rather than read
word for word
? They look for key words and concepts
? They like a personal, upbeat tone in
web writing
? They are turned off by boring,
longwinded writing
? They want shorter sentences, shorter
lines of text, shorter paragraphs and
shorter pages
? They like headings, subheadings and
bulleted text
If you decide that you do need a website,
how do you go about doing this?
Technically, it is possible to produce your
own website. But even if you have the
technical skills to do so, remember that
over 90% of non-professionally designed
websites fail to produce enough income
to return their software and hosting
investment. Remember too that the time
you spend on creating the website takes
away from your core business – unless of
course website design is your business.
You are better off seeking the professional
services of a web design company. Ask
around. Look at websites these companies
have produced. Call them up and ask
them if they are satisfied with the service.
Make sure you choose a company that
offers you:
? Name registration
? Good design
? Hosting
? Search engines
? Maintenance
? Special features, such as e-zines
(electronic magazines/newsletters),
pages designed as “doorways” to
maximise search engine and listing
service popularity, and online
shopping carts
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Managing your business > Marketing your business
Registering your site with search engines is
not enough. If you want to improve the
chances of people finding you on the web,
you must insert your website address
(URL) in every single marketing document:
? Print ads
? Fax cover sheet
? Invoices
? Business cards
? Business directories
? Trade publications
? On your shop/office window
To get extra mileage out of your answering
machine, use it to encourage people to
visit your website. At the end of your
message, say something like:
“For more information on our services,
please visit our website at ...”.
? They prefer the active voice: “We will
customise ...” rather than the passive
voice: “The product will be
customised for you”
? They don’t like having to guess who
you are – they want to know what you
do immediately, without having to
scroll through several pages
? They want to navigate your site easily
and quickly
? They want to be able to return to your
home page at all times
? They expect to find hypertext links
? They don’t want to see a replica of
your print brochure
ONLINE MEDIA CHECKLIST
Website
Website
Why is this
appropriate for
your business?
Why is this not
appropriate for
your business?
What do you want to
achieve from your
website?
How will you
measure the
effectiveness
of your website?
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Managing your business > Marketing your business
? Train stations
? Terminals
? Airports
? Seaports
? Sport venue advertising
? Beach and rest area advertising
? Golf course advertising
As always, the questions you must ask are:
? Will this work for you?
? Will your target market see it?
? Will your target market be influenced
by seeing your business advertised in
this particular context?
? Is it worth the expense?
? Is this the appropriate medium
for you?
Here are a few examples of businesses
that identified a particular outdoor/transit
medium to promote themselves:
There are plenty of outdoor and transit
opportunities for you to promote your
business:
? Your own delivery vehicles
? Billboards
? Shop/business signage
? Window posters
? Community notice board
? Bus advertising – side panels, rear
panels, interior panels, fully painted
buses
? Taxi advertising – side panels, interior
panels, fully-painted taxis
? Mobile billboards applied to small
trucks, trailers or bikes for two-sided
displays
? Bus shelters
? Other street furniture
? Bus stations
6(V) OUTDOOR & TRANSIT MEDIA
TYPE OF BUSINESS OUTDOOR/TRANSIT MARKETING MESSAGE
Shoe shop
Courier service
Sewing and
mending service
Sports shop
Mobile phones shop
Bus shelter
Delivery van
Community notice board
Sports venue (stadium)
Are your feet hurting you from so much
standing around?
Another package being rushed to its
destination – courtesy of ABC Couriers.
Sewing and mending at competitive prices.
We supply all your sports requirements.
You could be using your time usefully on the phone
right now.
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Managing your business > Marketing your business
OUTDOOR & TRANSIT MEDIA CHECKLIST
Form of outdoor/transit
advertising
Billboards
Window posters
Community notice board
Shop sign
Bus advertising
Taxi advertising
Mobile billboards
Bus shelters
Other street furniture
Bus stations
Train stations
Terminals
Airports
Seaports
Your own delivery vehicles
Beach and rest
area advertising
Golf course advertising
OTHER
Why is this
appropriate for
your business?
Why is this not
appropriate for
your business?
What do you want
to achieve from
this form of
advertising?
How will you
measure the
effectiveness of
this?
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Managing your business > Marketing your business
POS is less relevant for a service business,
except that the state of your office or
waiting room (tidy, untidy) can also
influence whether your customer
experiences a satisfying buying
environment.
Always ask yourself how you would react if
you were a stranger turning up in your
office.
GIVEAWAYS
You are certainly no stranger to
giveaways – just think how many
promotional pens you have received in
your life. Giveaways can be a useful
promotional tool if used discriminately.
To be effective, your giveaway must:
? Not cost too much
? Be relevant to your business
? Be durable
? Act as a permanent promotional tool
for your business
? Not put your customers off by
appearing too tacky
See the table on the next page for
examples of some giveaways.
PACKAGING
Packaging usually refers to the physical
enclosure in which you sell your product.
Good packaging:
? Attracts the customer
? Communicates product attributes
? Identifies the brand and seller
? Lists ingredients
? Makes the product easier to handle
Your packaging design can reduce costs
associated with storage, handling,
shipping, and pilferage. Packaging can
also refer to the overall impression that
your business makes, see Chapter 4 on
image.
POINT OF SALE
POS refers to the visual and audio
merchandising that a customer meets in a
shop, a warehouse, a showroom, or
anywhere else that products are on
display. Bags with your name/logo, flags,
banners, cut-outs, posters, signs and other
POS elements are designed to create
awareness of a product at the moment of
purchase.
You should only consider investing in POS
merchandising if you want to create a
satisfying buying environment that
stimulates an engaging customer
experience. If this is not critical to your
business success, then you should
consider alternative ways of spending your
marketing budget.
6(VI) SALES PROMOTION MEDIA
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? Equipment, samples – The cost of
delivering these to the venue
? Time – You or your representative have
to spend valuable hours away from the
office. Think carefully before
committing yourself to this expense
If you believe that participating in a show
is critical to attracting the attention you
want, or if this show won’t be repeated for
a few years, go ahead.
If you like the idea of participating in a
trade show, but you’re not sure it will
produce dividends, maybe attend the show
as a visitor the first time round. You can
assess who the competition is, what they
are offering, how many people visit their
stands – and you can also use the
opportunity for valuable networking. Just
don’t forget to take along a stackful of
business cards!
EXHIBITIONS & TRADE FAIRS
There are 3 categories of exhibitions and
trade fairs:
? Events aimed at the consumer
? Events aimed solely at the trade
? Events aimed at, and open to, both
The commitment to participate in a trade
fair or exhibition is costly. You need to take
account of several other expenses in
addition to the hiring of the stand:
? Stand design – If you want your stand
to look professional, you need to
employ a designer to decorate the
stand, and you need to deliver the
stand to the venue
? Stand literature – Brochures,
giveaways, etc.
TRADE FAIR CHECKLIST
1. Is the expense justified?
2. Who will be attending the event?
3. Will the procurement decision-
makers be there?
4. How many visitors came last
year?
5. How many visitors are expected
this year?
6. Of these, how many will be
interested in your product/
service?
7. Are you only participating
because everyone else is?
8. Have you spoken to previous
participants to find out what
value they place on the show?
DESCRIPTION OF COMPANY GIVEAWAY
Insurance agency
Smoked Salmon company
Dental practice
Auctioneer
House builder
Umbrella on which is written “We’re Here To Protect You”.
Packet of toothpicks with company logo.
Dental floss with own name on the packet.
Free report: “How to obtain the best mortgages”.
Free information pack for new home owners.
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SALES PROMOTION MEDIA CHECKLIST
Type of Sales Promotion
Packaging
Shop/office signage
POS in-store
signage/posters
Bags and other
merchandising
Giveaways
Exhibitions and trade shows
OTHER
Why is this
appropriate for
your business?
Why is this not
appropriate for
your business?
What do you want
to achieve from
this form of Sales
Promotion?
How will you
measure the
effectiveness of
this?
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Small businesses can benefit greatly from
professional creative experts who
specialise in creating the visual and textual
messages that will attract your target
audience. The two most important
members of your hired creative team are
the copywriter (the words person) and the
art director (more commonly known as the
graphic designer).
The copywriter is a wordsmith, someone
who has a way with words. The
copywriter’s function is to act as a sort of
go-between for both you (the advertiser)
and your customer (the target audience).
The copywriter distils your marketing
message, and translates it into advertising
language that will persuade customers to
buy your product or service. In essence,
the copywriter is your mouthpiece, and
ensures that your marketing
communications are clear, consistent and
concise.
The copywriter writes the words for
several different media:
? Ads, brochures and other print media
? Websites
? Slogans, taglines, and brand names
? Direct mail letter
? Narrative and jingles for radio and
TV commercials
? Press releases
? Packaging text
? Instruction booklets
? Speeches
HOW TO MAKE EFFICIENT USE OF
MARKETING PROFESSIONALS
Now that you have examined your media
mix and decided which combination of
media to use, you have to decide who to
go to:
? You can go directly to the media
providers (local newspaper, local radio)
? You can wait until the media come to
you
? You can use the services of marketing
professionals
Going to the media directly is tempting,
because you assume that you can get it
cheaper than going through a professional
intermediary. The problem is that the
media might be good at selling space, but
not necessarily good at producing
professional quality advertising.
Even large companies do not have the
inhouse expertise to run their marketing
campaigns. Small businesses have even
less in-house resources, so it makes sense
for them to stick to their core business,
and to leave hired guns to look after the
marketing.
7. HIRED GUNS
CASE STUDY
Liz opened a new nail bar, and
decided to announce this via an ad
in the local newspaper. She went in
to their offices, gave in the wording
of the ad, and waited to see how
the ad turned out.
On the publication day, she was
disappointed to find that her ad was
hidden among much bigger ads,
that the wording she had used
seemed very unprofessional
compared to other ads, and that the
design of her ad was very
unexciting.
She had chosen what she thought
was the cheapest route, but in
terms of effectiveness, her ad was a
waste of money.
CASE STUDY
Chris was very flattered when he
received a call from a sales
representative of “New Millennium
Wales . The Essential Business
Directory”. They were offering him
an ad in the new edition at half-
price if he paid upfront.
Although Chris had not actually
come across this directory, he
understood from the sales
representative that every major
company in Wales had a copy. The
terms seemed very generous, so he
signed the contract.
It was only when the directory was
eventually printed 10 months later
(and 10 months after he had paid
for his ad) that Chris realised that
no one was actually going to use
this directory. By reacting to the
offer to advertise, rather than
proactively choosing to advertise,
Chris had given up control of his
media mix decisions.
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The printer (the human variety, not the
machine) is another professional with
whom you will have frequent contact. Not
too long ago, a small business that wanted
promotional or advertising work would go
to the local printer. Designers were
regarded as a costly luxury, so printers got
landed with jobs that they were often not
fit for. The advent of desktop publishing
has allowed many print operations to move
up the skills chain, and some printers can
now offer quite sophisticated design.
Before you decide whether to entrust your
material to a printer or a designer, take a
good look at their portfolio of work. If you
are happy with the output of the printer,
this may be a cheaper option.
If design is important in your business, it is
often worth paying the extra price for the
creativity, experience and expertise of a
professional graphic designer.
The PR consultant advises you on your PR
strategy. Your PR consultant can:
? Provide an external, objective
viewpoint or perspective
? Increase your overall visibility
? Support a specific
product/service/event
? Support your entire marketing effort
? Advise you when you are the target of
adverse publicity (crisis management)
? Strengthen community relations
Unless your business is in the creative arts,
don’t be tempted to write your own
promotional texts and marketing materials.
Copywriters do it better, because they have
mastered the language of your customers.
Also, don’t think that just because your
neighbour’s daughter majored in Eng. Lit.
at university, she’ll be able to help you with
the writing. Academics often make the
worst copywriters!
The graphic designer combines the text
written by the copywriter with graphics,
photos, illustrations, and other visual
elements to create marketing
communication for a variety of media. The
graphic designer understands the power
and the emotion of typefaces, shapes,
words, colours and photos. Today’s graphic
designers have access to computer the
software and computerised techniques
that can achieve dramatic results.
Designers can usually handle the entire
production cycle, from concept to final
execution.
You would go to a designer for:
? An ad, brochure or newsletter
? A logo
? Letterheads
? Posters
? A sign
? Business cards
? Packaging design
? Any other type of visual
communication
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When choosing your PR consultant, check
the chemistry! Make sure the people
working on your account understand your
business, and are sensitive to the PR
image you want to project.
PR consultants price their services in a
variety of ways:
? Hourly fee
? Minimum monthly fee based on
estimated number of hours per month
? Project fees for a one-time project
(such as the opening ceremony for a
new building)
? Retainer fee
Check which is the most appropriate for
you.
Other professionals involved in the creative
process include:
? Web designers
? Photographers (including press
photographers and commercial
photographers)
? Illustrators and animators
? Marketing consultants who provide
expertise covering the broad spectrum
of marketing
? Ad agencies
? Audio/visual experts (musicians,
sound, video)
COMMON ERRORS IN WORKING WITH MARKETING PROFESSIONALS
Error
Leaving it too late to
involve the writer and the
designer.
Debating whether the text
or the design should come
first.
Asking your designer or
printer to “look over the
text”.
Giving your brochure to a
web designer and saying,
“Just reproduce this on
my website”.
Solution
Bring your key professionals (copywriter and graphic
designer) into the loop at an early stage. Involve them in
identifying and formulating your marketing messages and
target audiences.
There is no need to waste time on this chicken-and-egg
question. It doesn’t matter which comes first, so long as
your copywriter and your designer synchronise their work.
Just as you wouldn’t expect your copywriter to do the
design, don’t expect the visual professionals (web designers,
graphic designers, printers) to write your text.
The visitors to your website look for information in a
different way than readers of your brochure. Web content
(text) should be specifically written by your copywriter for
this purpose.
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Word-of-mouth referrals can come from
different sources:
? Existing customers – As we saw in
the restaurant example, a satisfied
customer can give the most authentic
endorsement of your product or service
? Friends and family – These are the
people who are naturally predisposed
to recommend you to others. But
again – don’t assume anything.
Galvanise them into sending you
referrals
? Professional colleagues – These are
people who work in your field, possibly
offering complementary but not
competitive products and services. For
example, if you are a physiotherapist,
your sources of referrals would include
orthopaedic specialists, GPs, massage
therapists, physical therapists, local
gym owners and sports coaches
? Influencers – People whom you come
into regular contact but who do not fit
the other 3 categories. Examples
include:
Neighbours
Clergy
Other small business owners
Corporate business executives
Accountants
Solicitors
Bank staff
Health club members
Former colleagues
Sports club members
Members of the Chamber of
Commerce
These sources of referrals: existing
customers, family, friends, professional
colleagues and influencers – also describe
the networks, the groups of people you
associate with at varying levels of intensity,
that every small business must cultivate.
We all feel special when the waiter in our
favourite restaurant greets us by name. We
all like being asked whether we want “the
usual” on the menu. We feel valued, and
we want to visit that restaurant again and
again. And because we want our friends to
share the same special treatment – we tell
them about it.
There are few more powerful ways of
reaching new customers than a personal
endorsement from a satisfied customer.
Word-of-mouth referrals that give you
greater exposure in your market can
become a valuable marketing tool for small
businesses.
Research shows that referrals can account
for up to 50% of your business. Don’t miss
the opportunity of milking all your networks
to create a steady stream of word-of-mouth
referrals.
REFERRALS & NETWORKING
Referrals are an ideal marketing tool
because:
? They are an inexpensive way of
gaining new business
? They come from a credible third-party
with first-hand experience of doing
business with you
? There is a high probability that you
can convert referrals into business
? People who refer others to you are
more likely themselves to work with
you
8. WORD-OF-MOUTH
CASE STUDY
Tom is a builder who received a
recommendation from another
builder to use the services of Dick
the cleaner.
Now Bob calls on Dick to clean every
single property he completes.
Another builder recommended to
Bob that he use the services of
Harry, the cabinetmaker. Now Tom
calls on Harry to build and install
cabinets in every home he
completes.
Everyone in the loop is happy. Tom
is relieved to have found top-class
professionals, while Dick and Harry
are delighted to have a solid client
like Tom.
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Don’t make the mistake of believing that
satisfied customers automatically pass
your name to other customers or
businesses. If you want referrals, you have
to actively ask for them.
In the best case scenario, relationships
that started out simply as networking/
referral relationships can become semi-
permanent.
To create a systematic referral generation
and tracking system, you need:
? Business cards that spread the word
concisely
? A tracking method that teaches you
who is a good source and who is a
waste of time
? Fast follow-up of all leads and
referrals
? To express your thanks to the source
of the referral
Acknowledging referrals with a “thank you”
encourages people to continue referring
customers your way. Avoid giving gifts or
cash, because it could be construed as
paying a commission.
POTENTIAL SOURCES OF REFERRALS
1
2
3
4
5
6
7
8
9
10
Customers Family/friends Professional colleagues Influencers
Write down the names of at least 10 people in each category
POTENTIAL SOURCES OF REFERRALS
Name of
person to
whom you
gave business
cards
Date you gave
them the card
Quantity of
cards
Results
(names/dates)
Date that you
thanked the
referral source
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Think of every encounter with prospective
customers as an interview situation. You
are being interviewed for your suitability to
supply your product or service. And if you
want to turn prospects into real customers,
you need to shine at your interview.
If you lack the confidence to sell yourself
and enter interview mode every time you
meet a prospective customer, have a friend
video a mock encounter. Study it. Get over
the embarrassment. Learn the difference
between passive and proactive networking,
then get out there and promote your
business at every opportunity.
When you own your own business, you are
always selling yourself. Every time you
meet someone, whether socially or in
business, you are not just a spouse, a
parent, tall, short, funny or serious. You
are a business owner looking for
customers.
Remember all those times you went for a
job interview? You developed some fine
interview skills. You were careful to make
a good impression on the interviewer.
? You dressed smartly
? You were well-groomed
? Your shoes were clean
? You were upbeat
? You sat attentively
? You answered in a focused manner
? You smiled and were polite
NETWORKING CHECKLIST
1. Shake hands with everyone you
meet at business functions.
2. Exchange business cards with
everyone you meet.
3. Write to past customers and tell
them you miss them.
4. Never throw away prospect
names and addresses.
5. Most people throw away most
advertising material – so keep
sending it.
6. Keep updating your contact list.
7. Send customers/prospects
articles of interest they may have
missed.
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PASSIVE NETWORKING
“By the way, I’ve just opened a new
business.”
Joining the Chamber of Commerce.
Going to business events/functions and
standing by yourself at the side.
Telling your family and a couple of friends.
“Hello, I’m Susan, I’ve opened my own
business in the office supplies sector,
and I would love to have the opportunity
of discussing with you how we could do
business together. Here are some of my
cards for you to hand to any colleagues
who might be interested in my services.
Do you have a card?”
Offer to sit on a Chamber committee. You
will be welcomed with open arms. Use
every opportunity to let Chamber
members and staff know what you do.
Sponsor a Chamber breakfast meeting or
the Chamber newsletter.
March up to people, introduce yourself,
shake hands, talk about your business,
hand out business cards.
Contacting everyone you know, including
all of the business and personal contacts
you have developed over the years. Ask
them to spread the word about your new
venture.
PROACTIVE NETWORKING
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You have already invested in marketing tools
to motivate people to want to work with you.
Now you need your selling prowess to turn
these people into customers and your
encounters into sales transactions. One of
the secrets of selling is to understand where
your customer is coming from. Customers
can be antagonised if they perceive that all
you’re trying to do is convince them to buy
your product or service. It is more useful to
think of how you can help customers get
what they really want. Once they know that
they can get what they’re looking for from
you, your selling challenge is to make sure
that when they look for it, they come to you.
Have you ever had a washing machine die
on you? If so, you’ll know that ads for
washing machines suddenly jump out of the
newspaper and shop windows. Why?
Because you want a new washing machine,
and you are attuned to information on
where to buy one.
It’s the same with selling. Always ask
yourself what your customers are looking
for, then help them find it by pointing them
in the direction of your business.
To successfully close a sale, you need to be
very, very persistent. Some products or
services can take several discussions with
the same customer before a sale is closed.
Sometimes nine people will turn you down
before someone says yes. You need a lot of
self-motivation to overcome these rejections
– but unless you determinedly keep trying,
you won’t get to the tenth.
For an example of unbelievable persistence,
spare a thought for Colonel Harlan Sanders,
the man behind Kentucky Fried Chicken
(KFC). (See far left).
SELLING
When you run a small business, you
discover that you never actually stop
selling. Wherever you meet your customers
or potential customers – at your place of
business, in the street, in their premises,
in the pub, at Chamber of Commerce
meetings – you are selling. This is even
more the case in smaller communities,
where you are known by a greater
proportion of the population.
Selling operates at several different levels
simultaneously:
? You are creating a relationship of
friendship and trust with the customer.
At the end of the day, people buy from
people they like
? You are exploring the customer’s world,
mindset, wants and expectations
? You are establishing a communication
channel based on mutual respect
? You are bridging the gap between what
the customer wants and what you can
deliver
? You are offering your services as a
problem-solver
? You are building the foundations for a
fruitful long-term business partnership
You do not have to be born with selling
skills to sell your product or your service.
Everyone develops their own style of
selling. But whatever your style, your goal
is identical: to try and clinch the deal.
9. SELLING & DISTRIBUTION SELLING
CASE STUDY
When Sanders had to close his
highly successful restaurant when a
new interstate highway completely
bypassed his town, he decided to try
and sell his Kentucky Fried Chicken
recipe. He drove across the country,
cooking batches of chicken for
restaurant owners and their
employees, but no one jumped at
the opportunity of going into
business with him. Sanders had
been rejected by over 1,000
restaurants before Harman’s Cafe in
Salt Lake City agreed to pay for the
privilege of using Sander’s unique
chicken recipe. The idea caught on,
and everyone knows the end of the
story. Sanders’ stubborn tenacity
made him believe that even after
1,000 rejections, someone would
eventually say “Yes”.
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? Internet – The Internet is becoming an
increasingly popular direct marketing
channel
Indirect marketing channel –
independent representatives & agents
Reps and agents are independent
contractors who find outlets for your
products. When you work through an
intermediary like a rep or agent, you are
not selling directly to your customer. Unlike
wholesalers, these freelance sales agents
do not purchase your product. They meet
their own costs and are paid only
according to results.
The advantages of using a rep/agent
include:
? Cost advantages – they only earn
commission when they sell on your
behalf
? If they don’t sell, you are not left with
hefty overheads, such as salary, car
and office space
The disadvantages include:
? You don’t control the time they spend
pushing your business
? If they find other products easier to
sell, or they are offered higher
commission to sell similar products to
yours, they may decide to give
relatively little effort to promoting your
products
? If they sell your product/service to a
disreputable customer, you could be
left with unpaid bills
If you intend to appoint a rep or agent,
it is a good idea to draw up a written
agreement so that both parties understand
what is expected.
DISTRIBUTION CHANNELS
Once you have decided what kind of
business you are setting up, you need to
choose a combination of distribution
channels for delivering your product or
service to your customers.
Direct marketing channels
If you are a service business or a small
manufacturer, you will probably use a
Direct Marketing Channel, whereby you
and your salaried staff sell directly to your
customers. By customer, we mean anyone
who buys directly from you, whether it’s a
consumer, another business, a retailer or a
wholesaler:
? Consumers (B2C) – If you manufacture
kitchen tables, and you sell directly to
consumers, you are using a direct
marketing channel. Similarly, if you
have a retail outlet, you are selling
directly to the customers who come
into your shop
? Other businesses (B2B) – If your service
or your product are geared for the
business market rather than for the
consumer market, then you are
dealing directly with your business
customers
? Retailers – The retailer is an
intermediary who sells your product on
to their customers. Although you don’t
sell directly to these customers, the
retailer is your direct customer
? Wholesalers/distributors – These are
also intermediaries who buy your
product in bulk and distribute it to
retailers and other outlets. They can
handle storage of your product,
advertising and promotion to retailers
and/or end-users. Although you don’t
sell directly to the end-user, the
wholesaler/distributor is your direct
customer
SELLING CHECKLIST
1. Be confident about the product.
2. Smile.
3. Enthusiastically describe the
benefits.
4. Politely rebuff any objections.
5. Avoid jargon – speak in the
language your customer
understands.
6. Remember and use your
customer’s name.
7. Remember personal details of
your customers.
8. Learn your customers’ buying
habits, likes and dislikes.
9. Be sure you are talking to the
person who can close the sale.
10.Learn how the customer found
you (or you found the customer).
11.Be aware of the customer’s
experience with your
competition.
12.Be aware of how your product/
service will benefit the customer.
13.Be convinced in your own mind
that the price is right.
14.Be clear about what price you
agree on.
15.Be clear about the payment
terms.
16.Be clear about the delivery
method and date/time.
17. Be persistent.
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EXPORT
Export used to have an exotic ring to it, but
in today’s marketplace, it simply means
that your customer lives outside your
national boundaries.
In this age of global communications,
overnight delivery and streamlined
logistics, having an export customer can
be no more complicated than having a
domestic customer – so long as the price
is right and the customer is happy.
If you make Christmas cakes, it might be
easier to deliver a truckload to Liverpool
than to Newport.
Is one export customer enough to make it
worth developing an export strategy? It is
difficult to generalise. Just as you should
avoid letting any single domestic customer
account for too much of your business, it
is not a good idea to allow a single export
customer to account for too much of your
total business.
Another thing to remember is that once
you have established procedures for
handling orders to one export customer,
you have the infrastructure to absorb
additional export customers.
POINTS TO BE COVERED IN YOUR
REPRESENTATION AGREEMENT
Products/services – Define which
products or services are covered in
the agreement.
Price – Define the retail price of the
product, since you will be issuing
the invoice.
Payment – Define who is
responsible for collecting payment.
Rate of commission – Define the
exact rate of commission that the
rep will earn on each sale.
Territory – Define the geographical
territory in which the agent will
operate (for example, the town,
county, region, or country).
Type of customer – Define what
kind of customer you are looking
for, and also define what kind of
customer you don’t want.
Duration of agreement – It is a
good idea to limit the term of the
agreement, so that you can review
performance, and if necessary
revoke the agreement if it’s not
working.
DISTRIBUTION CHANNELS
CHECKLIST
1. Are you reaching your customers
in the most cost-effective way?
2. Is your business more suited to
direct marketing or indirect
marketing?
3. Is the final price that your
customer pays (whether the
customer buys from you, from a
shop, from a wholesaler or from
a rep) the right/appropriate
price?
4. Are you sure that the end
customer is being provided with
service and support?
5. Are you devoting enough time
and energy to your core
competency?
6. How does this distribution
channel affect your bottom line
(can you afford it?)?
7. What channels do your
competitors use?
8. Where are the weaknesses in
your system?
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Small businesses involved in a creative
service industry will hardly notice the
difference between export or domestic
work. It takes exactly the same amount of
time and effort for a designer to send a
graphics file by email to Chicago as to
Carmarthen. It takes the same time to
email the text for a brochure to London as
to Llanelli. It takes the same time to show
your customer in Rimini what his website
will look like as it takes to show your
customer in Rhosmaen.
The only justification for taking the export
route is if you find an export customer who
makes it worth your while. There is no glory
in being an exporter who loses money on
every export transaction.
Use the checklist below to help you plan
your export strategy.
EXPORT CHECKLIST
1. Are your export plans part of your initial business plan and marketing strategy, or the
result of a marketing opportunity you don’t want to miss?
2. Which products/services do you want to export and to which foreign markets?
3. What primary and secondary research have you conducted on your target market?
4. Have you visited these countries in person to get a feel for the market?
5. What marketing distribution channels are you planning to use, and who are you
appointing to manage the marketing and sales operations?
6. Does your company possess the necessary language skills at all levels of the
organisation, from telephonists to customer support?
7. Have you organised your administration for foreign currency payments?
8. Are you complying with special safety, environment, quality, packaging, language,
and customs/excise regulations?
9. Are you sure your bottom-line profit justifies the extra distribution costs?
10. What are your sales targets per country/market/segment?
11. Will the energy you put into export place undue strain on your organisation?
12. Have you developed suitable marketing/promotional literature for your export markets?
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But once you have achieved your short-
term goal of acquiring new customers, the
balance shifts. Your medium/long-term
goal is to devote more and more efforts to
customer retention. Customers who have
given you a vote of confidence by doing
business with you become your most
valuable asset. You must continue to
provide them with good service, continue
to meet (or even exceed) their
expectations, and these satisfied
customers will return time and time again.
Customer Relations Management (CRM) is
not just a new way of saying customer
service – it is a better way. By making
customers more than mere transactions
and focusing on the relationship aspect,
you will be better equipped to engage in
nonstop wooing of your loyal customers.
It also makes good business sense to
focus your marketing energy on loyal
customers:
? 20% of your loyal customers usually
account for 80% of your revenue
? You invested considerable time, effort
and money in winning these customers
? You can drive your marketing costs
down, because you no longer have to
try and reach such a wide audience
? Dissatisfied customers rarely complain
– they simply vote with their feet (or
their wallets)
The key role of customer service in the
marketing of your business cannot be
over-emphasised. It may be a truism, but
without satisfied customers, your business
will not survive.
Customer service involves:
? Delivering what you promised
? Being pleasant and friendly
? Willingness to help
? Providing prompt service
? Well-trained staff
? Personal attention
? Little things that make the difference
Your staff (which includes you) must
understand how much importance you
attach to customer service. You will find
that employees who are treated with
respect will treat your customers with
respect. Your goal is to ensure that your
customers receive a consistently good level
of service, no matter who they encounter
in your business.
Poor customer service, for example, can
drive your customers to your competitor
just as effectively as a heavy media
campaign mounted by your competitor.
CUSTOMER RETENTION
When you first start your new business, it
is only natural to channel all your
marketing efforts into new customer
acquisition. Without customers, you will
not survive, and your initial focus must be
on creating a solid customer base. The
way to find these customers is via the
marketing tools described in this
publication.
10. CUSTOMER RELATIONSHIP MANAGEMENT
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There is evidence that dissatisfied
customers tell up to 10 friends and
colleagues about their negative experience.
Just think how fast you could lose potential
customers.
A high level of customer retention can
have a critical effect on your bottom line:
? Higher staff morale
(= lower staff costs)
? Lower staff turnover
(= lower recruitment costs)
? Longer customer retention
(up to 50% longer)
? More repeat business
(20% to 40% lower selling costs)
? More referrals (20% to 40% lower
marketing costs)
? Higher prices (7% to 12% higher)
? Increased margins
(7% to 17% more profit)
CALCULATING THE LIFETIME
VALUE OF A LOYAL CUSTOMER
Average sale value per customer
£______
Multiplied by sales per year per
customer
____
Total sales value per year per
customer
£______
Multiplied by no. of years your
customer
buys from you
____
Gross lifetime sales value per
customer
£______
If every loyal customer
recommends you to at least one
more customer, your sales will
soar.
CUSTOMER SERVICE CHECKLIST
1. Make sure the phone is always
answered promptly.
2. Train your staff in how to talk to
customers on the phone
3. Train your staff in how to talk to
customers in person.
4. Make sure orders are fulfilled
quickly and efficiently.
5. Establish grievance-handling
procedures.
6. Train your staff how to handle
difficult situations (for example,
irate customers).
7. Establish an ongoing dialogue
with your customers.
8. Regularly evaluate feedback on
how you are meeting customers’
needs.
9. Share your customer service
vision with your staff.
10.Visit/call/email your customers
on a regular basis.
11.Keep a record of the customer’s
details – name, address, phone,
email.
12.Maintain a positive buzz about
your product/service.
13.Aim to meet and exceed your
customers’ expectations.
14.Design your business to deliver
what your customers want.
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As a service provider, do not forget that
you deliver lots of extras that do not show
up as items on your invoice:
? Free consultation (meeting/s to
discuss the work/contract)
? Fast on-time delivery
? Free installation and setup
? Money-back guarantee
? First-year service
? Extended service hours
Because small service businesses are
selling an intangible product, they face
two big marketing challenges:
? How to market your service when,
even after you have completed the job,
there is often nothing customers can
hold in their hand
? How to price your service when you
cannot show your customer what you
propose to do for the price you are
quoting until the job is done – and
even then it could be too early to
judge
Not only do you have to somehow sell a
service that the customer can’t see, taste
or feel, you also need to convince the
customer that you can perform the service:
? To the customer’s satisfaction
? At least as well as, if not better than,
competing service providers
? At the same price, or less, than the
competition
11. SERVICE BUSINESSES
EXERCISE
List the added-value items that your
service business provides:
1.
2.
3.
4.
5.
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SERVICE PROBLEM
Insurance broker
House cleaning service
Landscape gardener
Web designer
PR consultant
Cover against theft and fire.
Home cleaning.
Redesign of private garden.
Website for new company.
A more positive image for a
restaurant after a food-poisoning
scare closed it down.
Customers are paying for something they hope will
never happen. The only tangible item they can hold
in their hand is the insurance policy itself.
Customers are paying for something they can’t see.
Even after the cleaning service has completed the
job, there is no tangible product left behind.
Customers can see photos of other jobs completed,
but even if they see 3D imaging, they cannot see the
finished version.
Customers can see examples of websites produced
for other companies, but they cannot see the final
version of their own website.
Customers can view examples of Media Releases and
press clippings, but it will take a while before they
can ascertain the effectiveness of the consultancy –
has the restaurant managed to shake off the poor
image?
EXAMPLE
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A big advantage about selling an intangible
service is that your customers often make
their purchase decisions based as much on
emotion as on facts. Exploit this by using
the language of benefits when trying to sell
your service.
One way of compensating for the small
size of your business is to emphasise your
professionalism by drawing up a document
that clearly defines what you do (and what
you do not) provide for the price agreed.
The more detailed the document, the less
room there is for misunderstanding.
Make sure that your customers understand
and appreciate these added-value items.
Service providers must make sure that
people know you are still around and keep
you in mind when the right project comes
along:
? Your follow-up calls after you have
completed a job should not only be
about chasing up your cheque. Find
out how the project is progressing
? Enquire whether the service you
provided achieved its goal
? Contact companies who failed to give
you their business last time round (or
failed to give you repeat business) –
just because you didn’t get the job
once doesn’t mean that they will never
give you work
A familiar problem with one-person (sole
trader) service companies is that
prospective customers might be
concerned that you cannot provide the
same level of service and reliability as a
bigger, more established company.
You can counter this by:
? Promoting yourself as a business and
not as an individual (“we”, not “I”)
? Focusing on your track record
? Emphasising your ability to work well
with large clients
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Managing your business > Marketing your business
YOUR OWN SAMPLE AGREEMENT
Assignment
What does the
assignment include?
What does the
assignment not include?
Start date
Delivery date
Delivery methods
The price
Payment terms
Materials cost included?
Travel cost included?
Extra costs not included
SAMPLE AGREEMENT FOR WRITING A WEBSITE
Writing the text (content) for a website for ABC Engineering.
Stage 2: Presenting an outline of the site architecture (max. 10 pages).
Stage 3: Writing the text.
Stage 4: Delivering first draft.
Stage 5: Corrections.
Stage 6: Delivering final draft.
Stage 7: Proofreading of the text in its final web format.
This assignment is for writing only, and does not include the web design
or the technical posting of the website on the Internet.
20 January 200x.
20 February 200x.
Final text to be emailed to ABC Engineering and their website designer.
£1,000 + £175 VAT = £1,175.
£350 + VAT with order; £350 + VAT on delivery; £300 + VAT 30 days
after delivery.
Yes.
1 visit to the customer’s premises to collect the initial information –
further visits requested by the customer will be charged at .100 each.
If the client makes more corrections after the final draft, there will
be a surcharge of £100 per round of corrections – If the client requires
more than the agreed 10 web pages, there will be a surcharge of
£50 per page.
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Managing your business > Marketing your business
Best of all, you will be exposed to these
new customers with the active
encouragement of the business that
acquired them in the first place.
The table on the next page shows some
examples of strategic cooperative
marketing ideas.
All these examples are win-win-win:
? You gain greater exposure because
these other businesses are telling their
customers about you
? The other businesses gain greater
exposure because you are telling your
customers about them
? The customers gain because they are
being wooed with special offers
CHUTZPAH
One of the most effective ways for small
businesses to add value to their marketing
is to use chutzpah. Originating in Yiddish
and Hebrew, chutzpah is a combination of:
? Cheek
? Nerve
? Audacity
? Guts
? Outrageousness
? Bottle
? Boldness
? Balls
The preceding chapters have focused on
the various options available to you as you
plan your marketing strategy.
But if you really want your marketing
efforts to stand out from the crowd, you
need to step back, look at all you have
absorbed about your business, and ask
yourself:
? What could you do differently?
? How can you make people sit up and
notice you?
? How can you attract attention to your
business in an unusual and
unconventional way?
One way for small businesses to compete
against larger competitors is to emphasise
the disadvantages of the competition’s
size. There is a long and noble tradition of
emulating Jack (of the beanstalk fame)
who used the giant’s weight against him.
The classic example is the famous Avis
tagline, “We try harder”, which capitalised
on the company”s number-two status.
Being seen as the underdog can appeal to
certain types of consumer. Niche markets,
such as the organic food industry and
various types of luxury goods, have used
this strategy to their advantage.
ALLIANCES & JOINT STRATEGIC
MARKETING VENTURES
Another way for small business owners to
achieve their marketing goals differently is
to cooperate with other businesses in
strategic marketing alliances and joint
ventures. By looking for opportunities to
reach the customers of complementary
businesses, you gain access to new
prospects.
12. DARING TO BE DIFFERENT!
Chutzpah allows you to achieve the
competitive edge you seek by:
? Challenging traditional methods of
problem-solving
? Looking for unconventional solutions
? Spotting opportunities that others have
missed
The table on page 70 offers some
examples of people who used chutzpah to
add pizazz to their marketing.
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Managing your business > Marketing your business
Your Business
Sports shoe and
sportswear store
Wallpapering business
Dry cleaners
Nail bar
Fashion designer
Any business
Your target market
Men, women and children
Private customers moving
into a new home or
redecorating their existing
home.
Men and women.
Women (adults, teenagers
and girls).
Women.
All local business.
You share this
market with:
Fitness equipment
providers, fitness centres
and gyms, fitness trainers.
DIY stores.
Men’s fashion boutiques,
ladies fashion boutique.
Hair salon.
Hotel.
Local hotels, local
restaurants.
You could add value to
them by:
Handing out 10% discount
vouchers for their services
to your customers.
Providing wallpapering
classes in their stores.
Offering discount vouchers
for their stores to your
customers.
Offering free-perm gift
certificates to your
customers.
Hosting a fashion show for
the hotel’s guests – the
hotel also gains from sale
of extra food and drink.
Sponsoring a free monthly
business-card draw –
diners place their
business-cards in a bowl –
you pay for the prize
(dinner for two, free
weekend, etc.)
They could help you by:
Handing out 10% discount
vouchers for your store to
their customers.
Referring their customers
to you when they want a
professional service.
Offering dry cleaning
vouchers to their customers.
Offering free nail art gift
certificates to their
customers.
Allowing you to sell your
line of fashions after the
show.
Allowing you to get publicity
as the sponsor, and to
access a valuable extra
source of business cards for
your database.
STRATEGIC CO-OPERATIVE MARKETING IDEAS
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Company
Fran Rooney, who bought
Baltimore Technologies,
a small 6-person
consultancy firm, in 1996.
Simon Woodroffe, founder
of Yo! Sushi restaurant-
chain in London.
Steven Spielberg,
filmmaker.
Rosemary, who set up her
own web design company
while still at college.
Ely Callaway, manufacturer
of revolutionary
golf clubs.
Harry Ramsden, owner of
Britain’s biggest fish and
chip restaurant.
Marketing challenge
To make tiny Baltimore
look like one of the major
players in the network
security field
dominated by long-
established US companies.
To find prestigious
multinational sponsors
who would impress
potential customers
and investors.
To break into the movie
business after failing to
get into the University of
Southern California
Cinema School.
To break into the inner
circle of the tightly-knit
local business community.
Ely’s ERC II driver was
banned by the US Golf
Association after it failed
to conform to testing
limits.
To pull off a major
publicity coup before
he retired.
Result
Fran’s marketing chutzpah
forced major US rivals to
notice the Irish upstart
company, and the company
was perceived as a global
leader in its field.
Thanks to Simon’s chutzpah,
investors and banks were
suddenly taking note of
Simon’s new sushi
restaurant with the famous
backers.
Spielberg became the
youngest director ever to be
signed to a long-term deal
with a major Hollywood
studio.
The minister agreed to be
guest of honour at the
launch of Rosemary’s new
local information website. On
the evening of the launch,
the business community
came out in force.
Rosemary’s chutzpah
gave her the opportunity to
wow a high-profile audience
of business people.
Thanks to Ely’s chutzpah,
suddenly everyone wanted
to buy the ERC II driver.
Harry earned himself a
place in the Guinness Book
of Records, and received
live coverage on the BBC.
Chutzpah
Just months after buying Baltimore, Fran handed
out huge cigars sporting the Baltimore logo at the
world’s major security software event, the RSA Data
Security Conference. At subsequent shows he threw big
parties, brought over the entire Dublin office to boost
the impression of Baltimore’s size, and co-sponsored
the RSA event, with the Baltimore name and logo
featured on all the conference and publicity material.
When Honda agreed to loan Simon a motorcycle, he
expressed his gratitude by appointing them official
sponsor of the restaurant. When All Nippon Airways
gave him an upgrade on a ticket to Japan where he
was conducting research for his restaurant, he
appointed them sponsors. He then displayed the
names of his two prestigious “sponsors” on the
menus, on the window, on the front door, on the
delivery bikes.
During a bus tour of Universal Studios, he discovered
an abandoned janitor’s cabin. Each day, he turned up
at the studio gates with a clipboard in his hands. The
security guards always waved him through. He turned
the cabin into his office, placed his name on the door
(“Steven Spielberg, Director”), and produced a short
movie that went on to win several film
festival awards.
Rosemary set her sights on the influential local TD and
cabinet minister. She discovered where he liked having
a coffee, and just happened to be there every time he
was there. When the minister invited her to join him
one morning, she told him of her business plans and
the difficulties facing a young entrepreneur.
Realising that if golf pros could not use the ERC II in
tournaments, it could not be marketed, Ely persuaded
the Royal and Ancient Golf Club of St. Andrews, the
governing body of golf outside North America, to
recognise the ERC II. They endorsed it as a legitimate
club for all championship golf.
In 1952, Harry decided to sell fish and chips at the
price (1 1/2p) they had been on 7 July, 1912, when he
opened his first shop in Bradford. In a single evening,
Harry served more than 10,000 portions of fish and
chips, causing traffic jams for miles around.
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Managing your business > Marketing your business
A small dose of chutzpah can go a long
way. Every small business owner has the
opportunity to come up with the chutzpah
to market their business differently. Every
small business owner can use chutzpah to
find unusual ways of achieving their
marketing goals.
Below is an example of a direct mailer
produced by Alan Clark, a one-person PR
consultant. Alan’s tone is deliberately
upbeat and cheeky, which is precisely the
impression he sought to achieve.
Use chutzpah to your advantage. If you
want to add that extra spark to the
promotion of your business, turn on the
chutzpah – the secret weapon in your
marketing armoury. Now look back over
the preceding chapters, and ask yourself
how you could use chutzpah to add extra
flair and fun to the marketing of your
business.
ON THE VIRTUES OF WORKING WITH A VIRTUOSO PR CONSULTANT
Introducing the new, compact and improved Alan Clark Communications
How would you react if I were to boldly announce that Alan Clark Communications is a smaller
PR consultancy than it seems? You’d probably say to yourself, “What an odd way to promote
any business, never mind a PR business”.
So let me explain.
As founder and head of the eponymous Alan Clark Communications, I ran a successful mid-
size PR consultancy for over a decade, with offices in downtown Glasgow. In recent years,
I started feeling that I was a victim of my own success. I originally entered the PR field
because I knew I had what it takes to deliver high-quality, proactive PR services to high-
profile clients. But the bigger my company became, I found that I was doing less and less
of the hands-on client work that I really love. While I enjoyed running the business, I
increasingly found myself missing the cut and thrust of media liaison, crisis management,
and all the rest.
I decided to get back to what I do best – establishing intimate working relationships with my
clients, and personally attending to their diverse PR needs. So I converted my garage into a
super-efficient office, in the process gaining 2 extra working hours a day by not having to
commute.
Today, Alan Clark Communications is me. Moi – Himself. WYSWYG.
When you choose to work with Alan Clark Communications, you get Alan Clark, the virtuoso
PR consultant.
When you choose to work with Alan Clark Communications, you join a small core of hand-
picked clients who prefer an experienced PR virtuoso to having to deal with junior staff.
When you choose to work with Alan Clark Communications, you are working with a PR
virtuoso, whose clientele includes Europe’s largest low-fares airline Ryanair.
When you choose to work with Alan Clark Communications, you are working with a PR virtuoso
chosen to advise Disney, the world’s largest entertainment organisation, in Scotland.
When you choose to work with Alan Clark Communications, you are working with a PR virtuoso
who advises Hutchesons’ Grammar School, Scotland’s largest independent school.
Why did they choose Alan Clark Communications?
* Because they value the wealth of experience that I bring to every job.
* Because they value the creative ideas and strategies that I bombard them with.
* Because they value my wit and my wisdom.
* Because they value my ability to think and act clearly under pressure.
* Because they value the fact that they always get superb value for money.
* And above all, they value the fact that I am 100% dedicated to promoting
their image in the media.
I know that not every business or organisation is comfortable working with a solo operation.
But I also know that there are lots of potential clients out there who feel that their interests
are best served by a virtuoso with an impressive track record.
Give me a call. Let’s meet and chat. If you like what you see and hear, and if I feel confident
that I can deliver the results you require, we can make great music together.
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Managing your business > Marketing your business
? Develop a USP that communicates a
powerful statement of the uniqueness
of your service or product
? Formulate the marketing messages
that will attract customers and
persuade them to do business with
you
? Convince yourself of the value of your
product or service before you try and
convince others
? Think of yourself as a walking and
talking marketing vehicle, dedicated
24 hours a day to projecting a positive
image of your business
? Your business card can be your most
valuable marketing tool . the next card
you give out could land you your
biggest customer yet
? Resist the temptation to write your
own marketing literature or design
your own visual communications
? Look for opportunities to get a story
about your business in the local,
national and trade media
? Find out if your potential customers
will use the web to find you before you
invest in a website
? Always match your message to your
market using the right medium. There
are professionals out there who
specialise in creating and
communicating your visual and textual
marketing messages
? Explore the power of word-of-mouth
referrals and the potential of joint
venture marketing
? Make your marketing efforts stand out
from the crowd by daring to be
different
Everything in this workbook is designed to
help you create your own exclusive
marketing strategy.
Read through the highlights below, take a
look at the sample marketing strategy for
the fictitious Welsh Fishing Supplies, and
you will be ready to go out and sock it to
them!
TIPS TO REMEMBER
? The main goal of your business is to
create a coherent marketing strategy
that will drive the engine of your
business
? Understand the business context in
which you operate
? Make time for keeping up-to-date on
the latest developments in your market
? Your customers are the lifeblood of
your business – without them, your
business will not survive.
? It’s not enough for your customers to
need your product or service, they
have to want it
? Once you have achieved your short-
term goal of acquiring new customers,
devote most of your efforts to
pampering your existing customers
? Guide your customers from
unawareness through awareness
through knowledge through preference
through conviction to action
? Develop a positioning statement that
expresses the core message you want
all your internal and external
communications channels to deliver
13. CREATING A MARKETING STRATEGY
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Managing your business > Marketing your business
SAMPLE MARKETING STRATEGY FOR WELSH FISHING SUPPLIES
OVERVIEW
Product Line Description
? A range of three fishing tackle boxes for attaching to the hull of a fishing boat. Made of tough plastic, the tackle boxes are
available in small, medium and large
Business Description
? A manufacturing company located in Burry Port, Llanelli
? Wholly owned by the founder, initial capital investment: £10,000
? The company imports components and assembles them locally
The markets to be served are:
? Short-term (first year): West Wales
? Medium-term: National
? Long-term: Export
Target Market
? Leisure fishing boat owners
Market Conditions
? Growth market – overall number of potential users has risen 20% annually since 1999 (quote source). The total number of
outboard motor boat sales 1998-2003 were 10,000 units (quote source). Projected sales at the same level over the next
five years = 50,000 units, plus 75% of units sold in the past 5 years still in use = 37,500 units, gives a total potential
market of 87,500 units in the national market. The estimated share of the West Wales is 20% of this, giving a potential
market of 17,500 units
MARKETING ISSUES
Customer Profile: Fishing boat owners
? Currently own fishing tackle boxes
? Read or subscribe to fishing magazines
? Listen regularly to fishing programmes on the radio
? Regularly attend boat shows
? Occasionally participate in fishing contests
? Male head of household
Product Positioning
? The fishing tackle box is positioned as a new convenient accessory that provides added convenience
for the boat fisherman
? Product benefits: compact modern design, convenient, safe storage for fishing tackle, added value to the fishing boat
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Managing your business > Marketing your business
Pricing Issues
? The pricing reflects the product’s added value compared to the tackle box they now own
? The retail price of the boxes has been set at £15 for the small version, £25 for the medium size, and £45 for the large
? Wholesale pricing will be 40% below retail pricing
Packaging Issues
? Products will be shrink-wrapped, and will be accompanied by a brochure that includes features, benefits and installation
instructions
? Boxes are packed six per cardboard shipping container
? Shipping container must include name of product, name of manufacturer, product code number, and gross weight of case,
and must conform to EU regulations
Distribution Issues
? The business is centrally located for easy access to target markets
? Tight procedures in place for coordinating orders received, production scheduling, shipping, and invoicing
? Shipments to retail stores via company’s own delivery vehicle
? Wholesale orders: either shipped via commercial road transport, or collected by wholesale customer from factory
? Raw materials/components from suppliers
? All components are imported directly from Far East, and will be stored in plant or in local, outside warehouses
? Finished goods will be stored in plant or in local, outside warehouses
? Inventory control system will provide efficient goods in/good out
Marketing Channels
? Marinas
? Fishing tackle stores
? Wholesale/chain: Boating supply houses, chain hardware stores, fishing tackle distribution
SALES TARGETS
Short-term (first year):
? To attain 10% of the market = 1,750 units
? To attain distribution in 50 retail outlets
? To attain distribution with one national retail chain
Long-term (five years):
? To attain retail distribution in 250 retail outlets
? To attain distribution with five national retail chains
? To reach a sales volume of 15,000 units by the end of the fifth year
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Managing your business > Marketing your business
MARKETING STRATEGIES
? Preliminary sales promotion programme in local market
? Direct sales and media campaign targeted at areas with lots of fishing and boating
? Media plan that includes ads in fishing and boating magazines as well as local newspapers
? Publicity and advertising to be timed for just before and during the fishing and boating season
? Provide adequate staffing to supervise sales efforts and ensure high levels of customer service
MARKETING TACTICS
? Contact local retail outlets for initial sales, analyse dealer reaction, project sales after 90-day test
? Establish a reporting system to track sales efforts and results
? Produce a sales brochure for use in all sales presentations and direct mailings. Brochure should describe all features and
benefits of the products, price and ordering information, pictures of the products, and installation instructions
? Develop ads in various sizes for the different print media
? Develop media releases describing new product, its features and benefits.
? Meet editors of local press and local radio, invite them to cover the launch of the business
? Sponsor the weather forecast on local radio
? Send media release to fishing/sport editions of local/national newspapers and appropriate magazines
? Schedule participation in any boat and fishing events (fishing contests, festivals) in the region
? Prepare suite of promotional material, including brochures, photographs, product samples, testimonials
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Managing your business >
Marketing
your business
For all your business enquiries contact:-
T: 01269 590219
Publication produced by:-
Carmarthenshire County Council
Economic Development Division
Business Resource Centre
Parc Amanwy, New Road
Ammanford
Carmarthenshire SA18 3EP
T: 01269 590200
E: [email protected]
W: www.carmarthenshire.gov.uk
Publication funded under the Celtic Enterprise & Business Support Network, an Interreg IIIA
funded project, in partnership with Waterford City Enterprise Board Ltd and South East Region
Enterprise Boards
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43121_Cover_Marketing_Your_Business 10/8/05 8:28 am Page 1
doc_469688721.pdf
Whether you are about to launch your new small business, or your business is already up and running, marketing is the lifeblood of your business.
03
Managing your business >
Marketing
your business
For all your business enquiries contact:-
T: 01269 590219
Publication produced by:-
Carmarthenshire County Council
Economic Development Division
Business Resource Centre
Parc Amanwy, New Road
Ammanford
Carmarthenshire SA18 3EP
T: 01269 590200
E: [email protected]
W: www.carmarthenshire.gov.uk
Publication funded under the Celtic Enterprise & Business Support Network, an Interreg IIIA
funded project, in partnership with Waterford City Enterprise Board Ltd and South East Region
Enterprise Boards
M
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n
a
g
i
n
g
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43121_Cover_Marketing_Your_Business 10/8/05 8:28 am Page 1
01
Managing your business > Marketing your business
3. PRICING
Every product or service has a price. In
order to set a price, you need to consider:
? Your cost price calculations (including
pricing your time)
? How much are your customers
motivated/influenced by price?
? Your pricing strategy (Cost plus,
Market minus, Penetration,
Skimming, etc.)
Whatever you decide, stick to it and do not
be afraid to ask!
4. THE IMAGE YOU WANT TO
PROJECT
Your image determines how your
customers perceive you. Does your image
instil trust, is it helpful to your business, or
is it a hindrance? With regard to your
image, you need to consider:
? The name you use for your company/
product/service
? The logo you use
? The location you use (particularly
relevant to retail)
? Working from home – pros and cons
5. MARKETING COMMUNICATIONS
You need to bring your potential customers
from being unaware of you to actually
buying. To achieve that, you need to be
able to communicate:
? What you do (who, what, where, how)
? Your unique selling proposition
? Your features and benefits
? Your marketing message
(sales and image)
Again, once you have decided, stick to it.
1. INTRODUCTION –
WHY YOU NEED MARKETING
In order to succeed, you need cashflow. To
get cashflow, you need paying customers.
To get customers, you need marketing. As
your own marketing director, you have to
make decisions about:
? The product or service
? Pricing
? Customer service levels
? Distribution
? Advertising
? PR
? Selling
2. MARKET RESEARCH
The better your market research, the
smarter your decisions, and the more
profitable you will be. Market research will:
? Help you to determine whether the
idea is viable
? Help you to identify the customers
within your target markets
? Help you to analyse the market and
the competition
? Help you to analyse your own
capabilities
Market research involves two routes to
information. One is straight from the
horse’s mouth, asking the target market
directly through:
? Questionnaires
? Focus groups
? Indirect research (spying,
counting, etc.)
The second route is through existing
sources of information. Whatever you do,
you need to do it and keep doing it.
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Managing your business > Marketing your business
8. WORD-OF-MOUTH
Word-of-mouth/referral is a powerful way
of reaching new customers, particularly for
small business. There are different
sources:
? Existing customers (ask!)
? Friends and family (ask!)
? Professional colleagues (ask!)
? Influencers
Develop word-of-mouth by looking at your
dress code, behaviour, language, etc., via
smart use of business cards, via “thank
you” notes and a tracking system.
Go out and do it!
9. SELLING & DISTRIBUTION
You never stop selling. The trick is to stay
true to your own style. Selling ultimately
(but not only) is about clinching the deal.
Keep trying and you will.
Consider:
? Direct/indirect distribution channels
(sales routes) to deliver your product
or service
? Export – pros and cons
(Carmarthenshire is very small as a
home market)
10. CUSTOMER RELATIONSHIP
MANAGEMENT
Once you have acquired customers it
makes good business sense to keep them.
Work through the checklist on page 63.
11. SERVICE BUSINESSES
Because services are intangible, you need
to put even more emphasis on marketing
and added value. Image and people
become key!
6. MARKETING MEDIA
Once you have decided on your messages,
the next step is to choose the right balance
/mix of media from among all the options,
including:
? Print media:
Business cards
Brochures/flyers
Direct mail
Advertisement
? PR:
Media releases
Articles
Newsletter
? Broadcast media:
Radio
Cinema
TV
? On-line media
? Outdoor and transit media
? Sales promotion media:
Packaging
Point of sale
Giveaways
Exhibitions and trade fairs
Match your Message to your Market using
the right Medium (and budget).
7. HIRED GUNS
These include:
? The copywriter
? The graphic designer
? The PR consultant
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Managing your business > Marketing your business
? Formulate the marketing messages
that will attract customers and
persuade them to do business
with you
? Convince yourself of the value of your
product or service before you try and
convince others
? Think of yourself as a walking and
talking marketing vehicle, dedicated
24 hours a day to projecting a
positive image of your business
? Your business card can be your most
valuable marketing tool – the next
card you give out could land you your
biggest customer yet
? Resist the temptation to write your
own marketing literature or design
your own visual communications
? Look for opportunities to get a story
about your business in the local,
national and trade media
? Find out if your potential customers
will use the web to find you before
you invest in a website
? Always match your message to your
market using the right medium
? There are professionals out there who
specialise in creating and
communicating your visual and
textual marketing messages
? Explore the power of word-of-mouth
referrals and the potential of joint
venture marketing
? Make your marketing efforts stand out
from the crowd by daring to be
different
12. DARING TO BE DIFFERENT!
You need to stand out. What can you do
differently, how can you make people sit
up and attract attention. Look at the
examples and try to come up with ideas.
Boldly go where no one has gone before!
13. CREATING A
MARKETING STRATEGY
Tips to remember as you devise and
develop your own marketing strategy:
? The main goal of your business is to
create a coherent marketing strategy
that will drive the engine of your
business
? Understand the business context in
which you operate
? Make time for keeping up-to-date on
the latest developments in your market
? Your customers are the lifeblood of
your business . without them, your
business will not survive
? It’s not enough for your customers to
need your product or service, they
have to want it
? Once you have achieved your
short-term goal of acquiring new
customers, devote most of your efforts
to pampering your existing customers
? Guide your customers from
unawareness through awareness
through knowledge through preference
through conviction to action
? Develop a positioning statement that
expresses the core message you want
all your internal and external
communications channels to deliver
? Develop a USP that communicates a
powerful statement of the uniqueness
of your service or product
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00 Managing your business > Marketing your business Bookkeeping Systems
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Managing your business > Marketing your business
Your time commitment to marketing is not
negotiable. When I hear small businesses
plead shortage of time as their excuse for
not developing a coherent marketing
strategy, I am reminded of a classic scene
from The Muppets. A pressured Kermit
has told Miss Piggy that he simply has no
time on his schedule to see her. “Kermie,”
she snarls with her trademark malevolent
smile, “MAKE time!”
Because marketing textbooks offer such a
profusion of marketing terms, it is useful
to start with some working definitions:
? Business plan – A working manual that
spells out what your business is about
– what you do and do not do, and
what your ultimate goals are. Your
business plan is a planning tool that
helps you assess your business
decisions within a wider context, and
also shows how you plan to support
your marketing operation
? Marketing strategy – Your marketing
strategy (this is a better term than
“marketing plan”) forms part of your
business plan, and presents a step-
by-step guide to how you intend to
implement the marketing elements of
your business plan. Your marketing
strategy is a roadmap that
encompasses every aspect of
marketing your business. Do not
confuse marketing strategy with
marketing tactics such as advertising
and PR. Without a marketing strategy
to give you direction and focus, your
marketing activities are like shooting
from the hip
Whether you are about to launch your new
small business, or your business is already
up and running, marketing is the lifeblood
of your business.
Marketing in a nutshell:
? In order for your small business to
succeed, you need cashflow
? To get cashflow, you need customers who
pay you for your product or service
? To get customers, you need to market your
business
It really is as simple as that.
Remember that it’s not enough to produce a
product or provide a service. Your number 1
goal must be to market your product or
service.
Marketing is all about letting people know that
you are in business. However good the
product or service you are offering, your
business cannot survive unless you attract
customers. You must create a coherent
marketing strategy that drives the engine of
your business and enables you to operate at a
profit. Failure to do so means that all the
energy and expense that went into creating
your business plan will be wasted.
Marketing is not:
? A luxury
? An expense
? Something you can or cannot afford
Marketing is:
? A financial investment – and your
customers are your ROI (return on
investment)
? A time investment – don’t spend a single
penny on marketing until you have taken
the time to learn about your market, to
consider your options, and to plan how to
market your business
1. WHY YOU NEED MARKETING
CASE STUDY:
Mr. Wrigley & the Train
Mr. Wrigley, he of the famous
chewing gum, was on a train
journey. One of his bright young
executives said to him, “Mr. Wrigley,
the whole world knows your chewing
gum. Just think of how much money
you could save by drastically cutting
the Wrigley marketing budget.”
Mr. Wrigley turned to the young man
and asked: “How is this carriage
moving?”
“It’s being pulled by the engine,
sir”, the young fellow replied.
“And what would happen if the
engine stopped?”
“The train would grind to a halt,
sir.”
“Precisely”, said Mr. Wrigley, “Just
think of marketing as the engine
which pulls the whole train. If we
stop investing in the marketing of
our chewing gum, the whole impetus
of our business will slow down, and
our operations will grind to a halt.”
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Managing your business > Marketing your business
your USP (Unique Selling Proposition)
and your marketing messages.
? Chapter 6 examines all the options that
go into creating your own distinctive
media mix: print media (such as
advertisements and brochures), public
relations (PR), broadcast media (TV,
radio and cinema), on-line media (the
Internet), outdoor and transit
advertising (billboards and bus
advertising), and sales promotion
media.
? Chapter 7 introduces you to the
marketing professionals who can help
you develop and implement your
marketing strategy.
? In Chapter 8, you will learn about the
importance of word of mouth
marketing.
? Chapter 9 is all about selling,
distribution and export.
? Chapter 10 describes the role of
Customer Relationship Management
in your marketing strategy.
? Chapter 11 is devoted to the special
marketing challenges facing small
businesses that offer a service rather
than a product.
? Chapter 12 looks at some offbeat ways
of developing a marketing strategy.
? Chapter 13 presents a sample
marketing strategy.
The goal of this workbook is to help you
formulate and develop a marketing
strategy with which to navigate your
marketing route. As the Cheshire Cat said,
when Alice asked which path to follow:
“If you don’t care where you’re going, it
doesn’t make a difference which path you
take.”
? Marketing activities – Marketing tactics
like advertising and PR – that help you
deliver your marketing message to your
potential customers. Marketing tactics
cannot replace a properly defined
marketing strategy
Every business needs a marketing
function. Someone has to be responsible
for the marketing operations. If you run
a small business, that someone may
well be you.
As your own marketing director, you will
have to make decisions about:
? The product or service
? Pricing
? Customer service levels
? Distribution
? Advertising
? PR
? Selling
At all times, you should always involve your
staff in all your marketing activities.
This publication is designed to take you
step-by-step through the process of
marketing your business:
? In Chapter 2, you will learn about the
market research that will determine
whether your idea is viable, and
whether you can find a niche in the
market of your choice.
? Chapter 3 looks at pricing issues.
? Chapter 4 discusses the image you
wish to project for your business,
including whether or not you need a
brand name or logo, and where you
establish your business base.
? Chapter 5 helps you develop your
marketing communications, which
includes your positioning statement,
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Managing your business > Marketing your business
Market research never stops, which is why
the data that underpins your decision
making must constantly be reviewed. The
more you continuously monitor what is
happening in the market, the better
equipped you are to fine-tune your
ongoing marketing operations.
IS YOUR IDEA VIABLE?
No amount of market research can ever
guarantee that your business will ultimately
be viable. There are too many other
variables at play here.
However, market research can help you
determine whether your idea is viable in
the first place. So even before you embark
on gathering intelligence data on your
market, you first have to develop and test
your business idea by subjecting it to a
critical analysis.
WHY DO YOU NEED MARKET
RESEARCH
Market research lies at the very core of
business planning. It begins the moment
you decide that you want to start a new
business – and never really ends.
Market research means becoming
knowledgeable about your market. With
market research, you will possess the
information you need to make smart
marketing decisions about your business.
And the smarter your decisions, the more
profitable your business will be.
Market research helps you to:
? Understand the business context in
which you operate
? Accurately identify and target your
market
? Check whether there is demand for
your business idea in the market
? Ascertain whether there really is a
market for your product/service
? Become knowledgeable about your
potential customers
? Identify what your customers want,
demand and expect
? Determine who are your competitors
? Identify gaps and opportunities in the
marketplace
? Understand the industry in which you
operate
? Find out whether you know how to sell
yourself
? Determine the focus of your marketing
strategy
? Obtain feedback about your ideas
2 MARKET RESEARCH
10 QUESTIONS ABOUT
YOUR BUSINESS IDEA
1. Why is it a good idea?
2. On what assumptions is that
opinion based?
3. How can you prove that those
assumptions are correct?
4. What types of customer will be
interested in your
product/service?
5. Why?
6. List 4 reasons why the idea may
not work?
7. List 4 reasons why your idea will
work.
8. What is the difference about this
idea from others already in the
marketplace?
9. Why are those differences
important?
10. What if… you changed the
product/service in some way?
Source: Starting Your Own Business
Workbook, Oak Tree Press
Before a military commander attacks a
stronghold, he tries to obtain military
intelligence: aerial photos, building plans,
and personal eyewitness accounts of the
target. When you are targeting your
market, you too need critical intelligence
information: demographic data, business
data, statistics, and eyewitness accounts
from people who have operated in that
market.
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Some businesses have multiple target
markets. They offer a range of products or
services to several different markets. This
is fine – just remember to get the mix
right. You need to be sure that what you
supply to one market does not offend or
antagonise another market.
As you gather your intelligence data on
your target market, you need to focus on
several different aspects of your market to
help you understand why certain people
will become your customers and why
others won’t. For example, caravan owners
are much more likely to buy caravan
equipment than non-caravan owners. The
more detailed your information, the better
you will be able to identify potential
customers. And the better you can identify
them, the better you will be able to target
them later.
Analysis of your target market
(prospective customers)
This involves answering these questions:
? What is the age, gender and income
level profile of your customers?
? What language(s) do they speak?
? What is their marital status?
? What nationality are they?
? What distinguishes their culture and
their lifestyle?
? What are their extra-curricular
activities, interests, hobbies?
? Where are they located?
? What do they want and what don’t
they want?
? What motivates them to buy?
? Where do they normally buy similar
products (in a store, Yellow Pages,
direct mail)?
IDENTIFYING YOUR TARGET
MARKET
To identify and understand your target
market, you need to know how your
potential customers behave, motivations,
their perceptions, their preferences, their
attitudes and their knowledge. You also
need to know what your customers want.
Don’t confuse need and want. How many
times have you gone to the supermarket
because you needed milk and bread – and
emerged with a frozen Chinese meal, ice
cream, a bottle of wine and some crisps.
We may forget what we need, but we buy
what we want.
That’s why your products and services
should reflect what your target market
wants to buy rather than what you want to
sell. And the best way of discovering what
they want is to put yourself in their shoes:
? Think like a customer
? Look at your business like a customer
? Ask yourself if you are happy with
every aspect of the buying experience
Your customers must want your product or
service. If they don’t want it, even if they
need it, you can’t sell it.
When you are in the process of identifying
your target market, you must learn to
differentiate between your true customer
(the one who signs the cheque) and the
ultimate user/beneficiary.
EXAMPLE: 1
Mike runs a delivery service
specialising in house-to-house
deliveries. One of the most
important sources of his income is
the local churches, which use Mike’s
service to have their parish
magazines hand-delivered. When
Mike agreed to deliver packages for
a new customer who rented out
adult videos, Mike’s church
customers were not impressed.
EXAMPLE: 2
Phyllis runs a tourism venue that is
an ideal attraction for senior citizen
day trippers. Because she thought
that her target market was the
50,000 senior citizens who belong
to senior citizen clubs, she worried
that her marketing efforts would
prove too costly. It was only when
she realised that her true target
market consisted of just 150 social
directors of senior citizen clubs that
she was able to focus her attention
on reaching these decision-makers.
They, not she, had the job of
persuading the 50,000 seniors to
come and visit her tourist venue.
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Analysis of the competition
This involves answering these questions:
? Do you know who your direct
competitors are?
? Do you know who your indirect
competitors (those competing for the
same money pool) are?
? Will your entry into the market be a
threat to your competitors?
? How are they likely to react?
? What are their capabilities?
? What are their future prospects?
? Is there too much competition in the
market?
? Is there too little competition?
? What are the weaknesses in your
competition’s offering?
? What alternatives do your customers
have to your product/service?
Analysis of your own capabilities
It is also worth asking yourself some
pertinent questions about yourself:
? What areas of marketing are you
comfortable with?
? What areas of marketing are you weak
in?
? Have you instilled the right attitudes
to customer satisfaction in your staff?
? Is the marketing culture in your
business strong enough?
? Why do they buy this product or
service?
? When do they decide to buy this
product or service?
? What do they listen to on the radio?
? What do they watch on TV?
? What daily and local newspapers do
they read?
? Where do they socialise?
? What is their sexual orientation?
? How do they spend their money?
? Who makes the purchasing decision
(husband, wife, child, buyer, manager,
secretary)?
? What would persuade them to come to
you rather than to the competition?
Analysis of the market/industry
This involves answering these questions:
? Are you trying to attract business
customers (what is known as B2B –
business to business)?
? Are you trying to attract consumers
(what is known as B2C – business to
consumer)?
? Is there sufficient demand (is the
market big enough) for you to make
money?
? Can you identify a niche in the market
that is under-served?
? Is there a gap in the market that you
can fill?
? Are you offering something new
to the market?
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A huge amount of secondary research is
available from publicly accessible
information sources:
? National Statistics Office
(www.statistics.gov.uk)
? Department of Trade & Industry
(www.dti.gov.uk)
? Government Departments and
Agencies
? Business magazines
? Local and national newspapers
? Banks
? Local Enterprise Agencies
? Professional associations
? Trade bodies
? Trade associations
? Trade publications
? Trade directories
? Trade exhibitions and conferences
? Web-based directories and resources
? Non-profit agencies
? Back issues of magazines and
newspapers
? Yellow Pages
? Competitors’ catalogues, brochures
and price lists
? Professional advisers (accountants,
solicitors, consultants)
? Local authorities
? Universities and colleges
FINDING THE INFORMATION
YOU NEED
Once you have identified in which areas
you need information, you need to know
how to go about obtaining this information.
Market research consists of:
? Primary research in which you go
directly to the target market and ask
questions
? Secondary research in which you look
for sources of information
If you conduct your secondary research
before your primary research, you will be
able to formulate better questions. You’ll
find much of the secondary research
information you need free of charge at
your public library or on the Internet.
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Focus groups
Another way of collecting valuable market
data is by using a focus group.
The function of a focus group is to provide
you with feedback on your ideas. You
assemble up to 10 people together in one
room, and get them to discuss and react
to a specific topic relevant to your
business. These deliberations, preferably
moderated by an outside facilitator, can
often provide you with richer and more in-
depth data than questionnaires.
Questionnaire
Armed with this background information,
you can now conduct primary research to
help you understand the nuts and bolts of
your market.
Qualitative research refers to in-depth
studies done on individuals and/or smaller
groups. Quantitative research is used to
generate a large quantity of data that will
form the basis for making predictions.
Small businesses can rarely afford
comprehensive quantitative research. A
more realistic alternative is to concentrate
on qualitative research such as
questionnaires and focus groups.
Your questionnaire should be based on all
the preparatory information you have
gathered. To encourage your prospective
customers to complete your questionnaire,
keep it relatively short and uncomplicated.
YOUR MARKET RESEARCH
QUESTIONNAIRE
Write down 10 questions you would like to ask the representative sample of your target
market:
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
FOCUS GROUP CHECKLIST
1. Choose a venue that provides a
comfortable environment for
constructive discussion.
2. Choose a professional facilitator.
3. Provide a free lunch . and you
won’t need to pay them for their
time!
4. Select participants carefully to
obtain a balanced mix of
experience and skills.
5. Select participants who represent
your target market.
6. The facilitator must ensure that
every participant expresses an
individual opinion.
7. A focus group is not a jury –
there does not have to unanimity.
8. The aim of the group is to focus
on a number of key issues –
make sure that these issues are
clearly explained.
9. Make sure the discussions are
minuted.
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Indirect research
Sometimes, you will not be able to obtain
the information you need from first-hand
sources. Use your ingenuity to indirectly
tap the information you require:
? Count how many cars are in your
competitors’ parking lots
? Count the “footfall” (the number of
people passing a particular spot)
outside the premises you intend to buy
? Count the footfall going into your
competitors’ premises
? Count the number of trucks delivering
to your competitors
The results of your primary and secondary
market research will form the basis for
formulating your marketing strategy.
Check that you have covered all the
relevant elements.
Market research must never be a one-off
event. You must constantly acquire vital
information about the evolution of your
market and your industry. Learn from Bill
Gates. Every year, he takes a week off with
just a suitcase full of books in order to
catch up on essential reading.
MARKET RESEARCH CHECKLIST
Does your market research cover:
Market size and structure YES/NO
Market trends YES/NO
Market potential YES/NO
Market share YES/NO
Level of competition in the market YES/NO
Competitor products/services YES/NO
Competitor prices YES/NO
Customer profile YES/NO
Customer attitudes YES/NO
Demographic factors YES/NO
Economic factors YES/NO
Industry factors YES/NO
Government factors YES/NO
Level of demand for your product/service YES/NO
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One way of testing your proposed pricing
policy is to ask the people who should,
would or could be interested in your
product or service:
? What would you regard as a fair price?
? What would you regard as too low a
price?
? What would you regard as too high a
price?
Ask them to be honest, and not just to give
you the answers you want to hear.
Remember that pricing is not always an
exact science. Although, logically, the more
standardised your product or service, the
more price sensitive it becomes, this logic
does not always stand up. In some
markets, especially in the services sector,
there can be a sort of reverse psychology.
The more you charge, the more customers
you attract.
A related but separate area of market
research is pricing. Every product or
service you intend to offer must have a
price set for it. In determining your pricing
policy, you need to calculate your:
? Production costs
? Profit margins
? Overheads
? Promotional and advertising expenses
? Delivery costs
You also have to juggle with several
different variables:
? The lowest price you can afford to
charge and still make a profit
? The price your customers are used to
paying for a similar product or service
? The highest price you can charge and
still attract enough customers to be
profitable
Price is often a compromise between you
and your customer:
? You want to charge as high as the
market will allow
? Your customer wants to pay as little as
possible
Once you have determined your pricing
structure, stick with it. Try and get your
pricing right from the beginning . raising
your prices later runs the risk of
antagonising your customers.
Remember that while some customers use
price as the sole criterion for their buying
decisions, others give greater consideration
to service, dependability, and convenience
value. Before you determine the price of
your product or service, you need to know
what motivates your customers.
3. Pricing
EXAMPLE 1:
You produce a flavoured milk drink
that you want to sell to a small 5-
store local chain of grocers. In order
to be competitive, you will have to
sell the drink to the chain at the
same price they are paying their
existing supplier – or even lower.
EXAMPLE 2:
You run a call-out plumbing service.
The going rate in the area is £20.
You will have a problem trying to
charge much more.
EXAMPLE 3:
You are a physiotherapist. You
charge 50% more than all the other
physiotherapists in town. People
flock to you because they think:
“If he’s charging so much, he must
be good.”
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NEGOTIATING PRICES
If you have never had to negotiate prices
before, you may find that you are reticent
to talk about money to your customer. You
may feel such gratitude and relief that you
have received an order that your business
sense goes out the window and you charge
a price that is too low. Get over it!
Make a list of features and benefits for
each product, and put a price on each
benefit. You will soon find yourself well
able to justify your price. Small businesses
are often frightened by their own pricing.
Even though you know that your sums are
right, there is a temptation to underprice,
especially if business is slow. Customers
are quick to sense your embarrassment,
and will exploit it if they can.
If you find yourself breaking into a cold
sweat every time you have to communicate
your price, it means that you yourself are
not yet convinced of the value of your
product or service. Always maintain eye
contact with your customer when you are
discussing price. Your steady gaze helps
your customer believe that your
product/service is worth the money.
PRICING STRATEGIES
There are several types of pricing strategy:
? Cost-based pricing – You arrive at the
price by adding the costs of
production (material, labour, fixed
and variable overheads) and business
operations to a profit margin. This is
a popular strategy in manufacturing
? Mark-up pricing – You add a pre-set
percentage to the cost of goods from
your supplier + distribution costs.
This is a popular strategy in retail
? Demand-based pricing – You determine
price according to what customers are
willing to pay
? Follow the market pricing – You set your
price by following the usual or average
price of your competitors
? Penetration/loss leader pricing – You
offer a low price or below cost price in
order to attract customers away from
the competition. Note that the prices
of certain items such as milk and
bread are subject to special
regulations regarding minimum price
? Price skimming – You go in with an
initial high price, and reduce the price
as the market becomes saturated or as
the novelty value wears off. Look at
how computer prices plummet just a
few months after they are launched
? Time-based pricing – This is common
practice for service businesses,
whereby you agree a fee per hour and
calculate the number of hours the job
takes or should take
DETERMINING YOUR PRICING
STRUCTURE
What are customers used to
paying at present? £__
What do your competitors charge for a
similar product/service (on average)? £__
What is your price? £__
What are the components
of your price?
Materials £__
Time £__
Equipment cost £__
Distribution £__
Other costs £__
Total costs £__
Profit margin £__
Selling price £__
Will you offer discounts? Yes/No
If yes, what kind of discount?
Will you give special offers? Yes/No
If yes, what kind of special offers?
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Remember that customers like dealing
with a reputable business. Project the
image of success. Project a professional
appearance.
Talk the language of “we” rather than “I”.
In the B2B (business to business) field
especially, customers are often more
comfortable dealing with entities rather
than with individuals.
Your aim at all times is to develop and
maintain a consistent image that is
reflected in everything you do. Have a look
in the mirror as you start your work-day
and ask: “Would I be comfortable doing
business with this person?”
Because that is exactly what customers
are asking themselves: “Can I trust this
person/business to deliver the benefits
they promise?”
You are your own walking and talking
marketing vehicle. Think of yourself as a
company van, with your business’ name and
contact details emblazoned on your front,
back and sides.
THE IMPORTANCE OF IMAGE
Once you have identified your market, you
need to give attention to the image you
wish your business to project. The
decisions you make about your business
image will influence the way you are
perceived by your customers. The question
you need to ask yourself is: Is my image a
help or a hindrance to my business?
The impression you make on others
depends on several image factors:
? Dress code and grooming
? Personal hygiene
? Attitude
? Politeness
? The car you drive
4. THE IMAGE YOU WANT TO PROJECT
HELPFUL IMAGE UNHELPFUL IMAGE
You are making an
important presentation
to a potential customer.
You sell high-quality
bedroom furniture.
You run a small jam and
preserves company with
its own shop.
You run a childcare
facility.
You are giving a seminar
to would-be
entrepreneurs.
You turn up early and make sure
that everything is in working order
for your presentation.
Your delivery person dusts the
newly-installed furniture, and
everything around it.
You give out a small sample jar with
every over-the-counter order.
You greet each parent by name as
they bring their child each morning.
You hand out a synopsis of your
seminar for the audience to refer to
later.
You turn up late and fumble your way through the
presentation.
You turn up to deliver the furniture in a battered old
van.
Customers in the shop can see your employees
smoking in the back.
Your hair is unkempt, your clothes are scruffy, and
you have BO.
You are not careful with your language, and offend
some of the participants.
SITUATION
? The location of your business
? The name of your business
? Your staff
? Your business cards
? Your logo
? The message on your answer phone
You can’t afford to dismiss the image
issue. You can produce the world’s
highest-precision paper clip, or give the
world’s most heavenly massage, but if
you’re not making the right impression on
your customers, you’ll find you don’t have
any.
The situations below show you how image
can play a key role:
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Managing your business > Marketing your business
when people encountered this strange
sounding brand name for the first time.
But did anyone decide not to buy an Apple
because it had a funny name? Unlikely.
Bearing in mind that your business is
surrounded by mass-volume advertising
and brand promotion, you need to ask
yourself: “Are my brand names making it
easier or harder for my customers to
recognise and value my business?”
While you might think that your products
and services will benefit from a brand
name, your business may actually suffer if
customers perceive this as being too smart
by half. Use your market research to help
you decide.
If you do decide to create a new brand
name, the panel has some useful tips.
YOUR NAME AS IMAGE
The name of your business, product or
service also impacts on your image.
One of the first decisions any small
business has to make is whether to use
their own name or to create a brand name
for the business.
If you are a solicitor, accountant, mortgage
broker or auctioneer, it is traditional – but
not mandatory – for your name to be
synonymous with the business name. If
you produce consumer items to be sold in
retail outlets, you are more likely to want to
create your own brand name. Look at the
examples in the table, and decide what
makes sense for you.
In the end, it is a comfort thing. There are
no rights and wrongs. Go with your
intuition. When Apple computers first hit
the market, many eyebrows were raised
USING YOUR OWN NAME CREATING A NEW NAME
Pine furniture
House-cleaning service
Landscape gardener
Web designer
PR consultant
Engineering
Fashion boutique
Insurance
Milk based fruit drink
Plastic garden chair
Safety at work training
programme
Recipe book
Shane Faulkner Pine Furniture
Sally Whittaker House-Cleaning Services
Steven Quinn Landscape Gardening
Deirdre Black Web Design
Mary Briggs PR Consultancy
Mary Hughes Engineering
Stella McArdle Fashions
Peter Malone Insurances
Collins Dairies Fruit Drink
Daly Brothers’ Garden Chair
The Jan Butler Consultants’ Safety at Work
Training Programme
The Dave Macintosh Recipe Book
The Pine Place
Clean-Up
Verdant
Online Web Design
Image Consultants
Proto Engineering
Bucks Fizz
QuoteDirect
Tootee-Frootee
The Relax Range of garden chairs
Watch It!
Yummy!
DESCRIPTION OF BUSINESS
BRAND NAME TIPS
1. Avoid names that are too long,
too complicated, too difficult to
pronounce or too difficult to
spell – unless you believe that
the novelty factor will work to
your advantage.
2. Avoid initials unless they mean
something.
3. Avoid names that could be
confusing for your customers –
unless this is deliberate (such as
FCUK – French Connection UK).
4. Brainstorm (by yourself or with
others).
5. Make your decision and move on,
otherwise you end up wasting
valuable time.
6. Don’t ask too many people their
opinion – names are intuitive,
not scientific.
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Managing your business > Marketing your business
YOUR LOCATION AS IMAGE
You have probably heard the famous
adage about the three things that
determine the success of a retail shop:
Location, Location, Location.
Location can also have image implications
for retail outlets. Location can have less
critical image implications for non-retail
businesses, such as:
? Businesses where the customer never
steps inside an office – a window
cleaning business or a mail order
business
? Businesses that are more geared to
serving other businesses (B2B –
business to business)
? Service businesses
Whether you are retail or not, your decision
regarding location should take account of
business, marketing and image
considerations.
DO YOU NEED A LOGO?
Logos can be powerful images. Think of
the Nike swoosh, the graphic treatment of
the words Coca Cola, and the Volkswagen
symbol.
But does a small business need a logo?
Certainly, a well-designed logo can often
add to your image. As a small business,
you will need to invest in a basic design
language anyway, if only to have business
cards, invoices and letterheads.
Whether you invest specifically in a logo
really depends on what line of business
you are in.
A useful yardstick for deciding whether
you need a logo is whether you have a
brand name. Some of the examples we
looked at earlier – such as The Pine Place
and Tootee-Frootee – would be obvious
candidates for either a unique graphic
symbol or a stylised visualisation of the
name itself.
The chapter on marketing professionals
later tells you what sort of things you
should be looking for when choosing
someone to design your logo.
CASE STUDY
When PC assembler Romak
Computers embarked on a re-
branding exercise, they called in
a copywriter (see Chapter 7: Hired
Guns) to facilitate a brainstorming
session aimed at finding a new
name. The copywriter brought a list
of 30 names to the meeting, and
persuaded the participants to agree
in advance that by the end of the
2-hour allotted timeframe, they
would choose a name. Ten of the
names were struck off because they
were too similar to existing
company names. Ten names were
rejected as unsuitable, and a
further 5 were rejected as not
being special enough. Finally, one
of the 5 remaining names emerged
as everyone’s favourite. The
company chose the name iQon
Technologies, and the very same
day a graphic designer was asked
to work on designs based on the
new name.
Remember that the most creative
name in the world cannot make
up for defective quality or service.
The last thing you want is for
customers to associate your name
with negative experiences.
LOCATION CHECKLIST
1. What are your location options
(shopping mall, shopping area, hotel
district, restaurant district, office
building, town centre, industrial estate,
home, suburbs, village)?
2. What does the area look like?
3. How easy is it to find?
4. Will this location draw the customers
you are looking for?
5. Could this location turn your customers
off?
6. Do you need to provide a map to help
your customers find you?
7. What will customers see and experience
when they visit your business?
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Managing your business > Marketing your business
Working from home
Some small businesses can get away with
being located in the home of the business
owner. There is something very appealing
about swapping the early morning rush
hour for a commute that takes you all the
way from your bedroom to your home
office. However, running your business
from home doesn’t work for everyone and
doesn’t work for every business. Look at
the checklist before you rush to convert
your home into your workplace.
Over 8,000 new home businesses start
every day in America. They even have a
cute name for people who operate from
home. They are called the “Pyjama Set”
(because the myth says that they can work
in their pyjamas until noon or later!).
Locating your business in a small
community has its own advantages.
The smaller customer base means that the
number of potential customers you need to
reach is smaller. Your advertising costs are
usually much less than in the major cities,
and in a small community you can make
an immediate presence.
The downside to being located in a small
community is that unless your market is
not geographically dependent, your
potential market is more restricted.
You can also afford to make fewer
mistakes in a smaller community. In larger
population bases, you can make mistakes
without everyone knowing about it.
WORKING FROM HOME CHECKLIST
1. Is your business suitable for working from home?
2. How will your customers react to a home-based business?
3. Are you able to separate your work space and your living space?
4. Are you the sort of person who needs to interact with others on a daily basis?
5. Have you studied the tax implications of working from home?
6. Is there anything in your lease which forbids certain types of commercial activity on your
premises?
7. Do you have the self-discipline to work from home?
8. What happens when you want to employ staff? Are you mentally prepared for employees
using part of your home like a regular office, including access to bathrooms?
9. What does your family have to say?
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Managing your business > Marketing your business
YOUR POSITIONING STATEMENT
When someone asks you, “So, what do you
do”, you need to be able to respond:
? Clearly
? Concisely
? Convincingly
? Consistently
That’s why you need a positioning statement
that expresses the core message you want all
your communications channels (internal and
external) to deliver.
Try and imagine that every time you meet a
potential customer (face-to-face, on the
phone, via a direct sales letter, through an ad
or PR piece on you in the local media), he or
she is asking you seven basic
questions:
? WHO are you?
? WHAT do you do?
? WHAT market do you serve?
? WHO have you worked with?
? WHAT is so special about your business?
? WHERE can I find you?
? HOW do I initiate business with you?
The better crafted and clearly differentiated
your positioning statement, the faster you can
move your customers along the awareness
continuum to the action stage. Remember,
you don’t always know in advance how much
time you have to make that crucial first
impression, so it’s best to prepare a range of
positioning statements.
Don’t be caught off guard when you’re asked
what you do. A fumbled “Oh I don’t do anything
special” or “That’s a difficult question” just
won’t do. Practice your answer so that it
comes out like a mantra.
Once you have identified your target
market and established an image that suits
your business, you need to develop your
own marketing communications language.
This will enable you to communicate the
real and perceived benefits of your
product, your service or your business to
your potential customers.
The role of your marketing
communications is to shepherd customers
from unawareness to action via five key .
stages:
? STAGE 1: From unawareness to
awareness – becoming aware of your
existence.
? STAGE 2: From awareness to
knowledge – understanding what you
do and what you are offering.
? STAGE 3: From knowledge to
preference – liking what you offer
more than what the competition
offers.
? STAGE 4: From preference to
conviction – deciding to do business
with you.
? STAGE 5: From conviction to action –
performing the purchase act.
In this chapter, we will look at several
distinct layers of your marketing
communications strategy, starting with your
positioning statement and your unique
selling proposition (USP).
5. MARKETING COMMUNICATIONS
EXERCISE
WRITE A ONE-LINE POSITIONING
STATEMENT IN ANSWER TO THE
QUESTION:
WHAT DO YOU DO?
WRITE A ONE-SENTENCE POSITIONING
STATEMENT IN ANSWER TO THE
QUESTION: WHAT DO YOU DO?
STATEMENT
WRITE A ONE-PARAGRAPH
POSITIONING STATEMENT IN ANSWER
TO THE QUESTION:
WHAT DO YOU DO?
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Managing your business > Marketing your business
? You might be a superb furniture-maker
– but so are many other furniture-
makers in your market
Whatever technical skills, innovative
products or creative ideas you possess
will remain a secret unless you let
people know.
Whether your competition is locally,
nationally or even globally based, you need
to find a distinct advantage.
Which is why your business needs its own
Unique Selling Proposition – your USP –
which:
? Communicates a powerful statement
of the uniqueness of your service or
product
Once you have formulated a positioning
statement that you are happy with, make
sure that everyone involved in your
marketing communications, PR and sales
operation is familiar with it. They too have
to be able to answer clearly, concisely,
convincingly and consistently when asked
about your business.
YOUR UNIQUE SELLING
PROPOSITION (USP)
Developing a positioning statement is a
vital first step – but it is not enough:
? You might be a highly qualified
childcarer – but so are many other
childcarers in your market
? You might be a gifted engineer – but
so are many other engineers in your
market
ELEMENT OF UNIQUENESS USP USP TAGLINE
Grocery/convenience store in the
very best location in town.
You have opened a graphic design
studio after 15 years working in
New York with a major graphic
design studio.
Childcare facility.
You run a repair garage, and you
are aware of the bad reputation
of auto repair establishments.
Kitchen table manufacturer.
You are a white goods retailer, and
the products you sell are also
available from your competitors at
a similar price.
Sandwich shop.
You offer ample parking and easy hassle-free
access.
You have won several industry
awards for your work.
You are the only professional who has trained in
a new method of teaching children arithmetic
skills through music.
Your USP is that you promise to undertake a job
only if there is real need.
You use only top quality materials and
workmanship.
You offer very fast delivery and, even if your
competitors offer the same service, you can be
the first to emphasise this particular advantage.
Unlike other sandwich shops, you make your own
sandwiches fresh each day.
Convenience.
Record.
Exclusivity.
Trustworthiness.
Reliability.
Speed
Freshness.
The most convenient
shopping in town.
Effective design from
an award-winning
designer.
The pioneers of
arithmetic teaching
through music.
If Your Car’s OK
We Won’t Fix It.
You’ll still be sitting
at our table 20 years
from now.
Buy today, we’ll
deliver it tonight.
Home-Made
Tastes Better.
DESCRIPTION OF BUSINESS
? Is the essence that runs through your
entire operation
? Projects a message about your
commitment
? Hints at the benefits of working with you
? Sets you apart from your competition
Your USP helps your business to stand out
from the crowd. Differentiate yourself with
something unique and memorable that
helps your customers to remember you
and persuades them to do business with
you.
Here are some examples of how to develop
your USP into a USP tagline that you can
use in your marketing.
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Managing your business > Marketing your business
YOUR MARKETING MESSAGES
Based on your positioning statement, your
USP and your benefits, you can now
formulate the marketing messages that will
attract customers and convince them to work
with you.
If you decide to employ marketing
professionals (see Chapter 7) to help you
conduct your marketing strategy, your
marketing messages will form the basis of the
creative brief you give them. If you decide to
handle your own marketing, your marketing
messages will become a constant theme
running through all your marketing activities.
Remember that your marketing messages
take time to establish themselves in the
minds of your customers. Don’t let
thoughtless communication erode all the
good work.
Once you find a marketing message that works
for you, stay with it. Customers can become
confused if you change messages, so unless it
is imperative, don’t depart from it.
Write down some elements that
differentiate your business.
Now choose the most important element of
uniqueness, and formulate a USP
statement that you can trumpet at every
opportunity.
Remember to expose your customers to
your USP in all advertising material. As an
exercise, write down your USP and your
USP tagline.
Your features and benefits
Whether your business sells a product or a
service, it has both key features (which are
descriptive and factual) and key benefits
(which are emotive).
You should never confuse features and
benefits. Your customers need to know
about the features, but it is the benefits that
will persuade them to make the purchase.
CASE STUDY
In an unguarded moment during an
after-dinner speech that was widely
reported in the media, UK high-
street retail jewellery-chain boss
Gerald Ratner called his company’s
products “crap”. He so offended
customers that within a week, sales
in hundreds of Ratner’s stores
plummeted, share values dried up,
and eventually Ratner himself was
forced out of the company he
founded. His ill-chosen words
destroyed years of developing his
marketing message.
HELPFUL IMAGE UNHELPFUL IMAGE
Sofa
Book store
Childcare facility
Alternative healing
Home-made cakes
Folding kitchen chairs
Air conditioning units
Insurance
Travel company
Wedding dress
Leather upholstery
20,000 books
Qualified staff
Massage bed
Log-shaped
Pine
3-speed power
Comprehensive cover
Linked to 10 major airline booking
systems
Choice of fabrics
Long-lasting
Massive choice
Peace of mind
Calmness
Mouth-watering
Handy
Comfort
Security
Time-saving
Glamour
SITUATION
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Managing your business > Marketing your business
Image messages vs sales messages
We said at the start of this chapter that
your marketing communications must
shepherd customers from unawareness
to action via five key stages.
Stage one was to make customers aware
of your existence, and stage five was to act
upon their conviction and to complete the
purchase act.
When formulating your marketing
messages, distinguish between:
? Image advertising focuses on the
image of your business, and helps
focus attention on your existence
? Sales advertising focuses on closing
the sale on your product or service
Both forms of marketing messages are
legitimate, but you need to be clear which
you want.
MARKETING MESSAGE CHECKLIST
1. What is your positioning
statement?
2. What is your USP?
3. What are your value propositions
(key benefits)?
4. What are the features?
5. Testimonials from satisfied
customers.
6. Information about guarantees,
service, installation, etc.
7. Prices and fees.
8. Payment/credit terms.
9. Ordering information.
EXAMPLE OF IMAGE MESSAGE EXAMPLE OF SALES MESSAGE
Training organisation
Food manufacturer
Travel agency
Printer
Computer-repair workshop
Sign up for our computer
training course
Special offer on our homemade
sausages.
New York weekend for
under £400.
Free business cards when you
order letterheads.
Free home call-out.
TYPE OF BUSINESS
We have worked with bluechip
companies.
Our manufacturing facilities comply
with the highest quality standards.
We look after our customers.
Printer State-of-the-art printing
equipment.
Highly trained maintenance
engineers.
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Managing your business > Marketing your business
? ON-LINE MEDIA
Website
? OUTDOOR & TRANSIT MEDIA
? SALES PROMOTION MEDIA
Packaging
POS (Point of Sale)
Merchandising
Giveaways
Exhibitions and trade shows
A seventh category – word-of-mouth
marketing – is not strictly a medium, and
will be dealt with separately.
Media Mix – Finding the Balance
Once you know the function (and cost) of
the alternative media options, you can start
developing a media mix: a combination of
marketing activities tailored to your target
audience and to your budget in order to
achieve your marketing strategy.
The secret of a successful marketing mix
can be summed up in the 4 Ms formula:
Match your Message to your Market using
the right Medium.
As you ponder which communication
activity to use, remember that your
customers are being bombarded with
hundreds if not thousands of advertising
messages every day.
These messages are hitting them from
many different sources, so it is smart to
spread your messages among more than
one single advertising activity.
One thing you can be sure of: you will
never use every media option (even if you
could afford them all!) to market your
business, because certain media are
suitable for some markets and not for
others.
INTRODUCTION TO THE MEDIA
In previous chapters, you determined who
your target markets are, what image you
want to project, and what marketing
messages you wish to employ to reach
your prospective customers.
Now comes the key decision-making
moment: Which media to use?
This chapter explores the various
advertising and marketing media that serve
as communication vehicles to deliver your
marketing message to your target market.
Before you can make an informed choice,
you do need to know what is available out
here and to gauge which media will work
most effectively for your business.
The marketing literature offers a confusing
array of different buzzwords to define the
advertising and marketing media. These
concepts are not always terribly useful
when you need to decide which media to
use in your marketing strategy.
Thus, to simplify the picture, we have
divided the media into six main categories:
? PRINT MEDIA
Business cards
Brochures, flyers, circulars
Direct mail letter
Newspaper and magazine
advertisements
? PUBLIC RELATIONS (PR)
Media releases
Newsletters
Sponsorship
? BROADCAST MEDIA
Radio
Cinema
TV
6. MARKETING MEDIA
Just as you don’t need to use every media,
don’t be tempted to rely on just one
medium.
Think of your marketing media as a toolbox
containing a choice of ways that promote
your business. At different times, for
different occasions, and for different target
audiences, choose the combination of
media you feel are most effective.
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Managing your business > Marketing your business
The marketing budget
There is no magic formula for determining
your overall marketing budget. In the
opening chapter, we said that marketing
should not be regarded as an expense, but
as a financial investment. You invest in
marketing, and your customers are your
ROI (return on investment).
It is really a question of balance. At every
stage of your business development, you
need to assess how much you must
allocate to your marketing budget. It is not
just a question of what you can afford. It is
more a question of what you have to
spend in order to expose your business to
your target market. Becoming aware of the
different media options, as well as non-
media options, such as word-of-mouth, is
the first stage. When you have assessed
which media mix is the most effective for
your particular business, then you can find
out how much this costs, and try and build
this into your budget.
Small businesses, in particular, by
definition, will have limited resources.
The trick is to creatively weigh up where
you spend your money. That is why it
is so important to track your marketing
performance and results. Whatever your
line of business, find a mechanism that
allows you to monitor how your customers
found out about you. Unless you know
that, you will never know whether your
particular media mix really works.
EXAMPLE 1:
If you open a fashion boutique and
your target market is teenagers in
the 12-17 age bracket, you are
unlikely to reach them by
advertising on a classical music
programme on the radio.
If, however, you open a book and
record store with a large classical
music range, you may well choose to
advertise on the classical music
programme.
EXAMPLE 2:
If you open an engineering business
specialising in building prototypes
for industry, you are unlikely to
reach you target market by
sponsoring the local amateur theatre
production.
If, however, you open a drama
school, you may well choose to place
an ad in the programme.
CASE STUDY
John had a small accounting
business, and wanted to increase his
exposure in the local media.
He made a £5,000 donation to a
local charity’s annual gala
fundraiser, in the hope that this
would make a great news story.
His gesture was greatly appreciated
by the charity, and indeed he gained
one brief story and photo in the
local paper. But for this moment of
glory, John had blown away his
annual marketing budget.
If John’s goal was to be a
philanthropist, his donation made
sense. But since his goal was to
drive his business by attracting
positive media exposure, he could
have spent the money more wisely
on a more diversified marketing and
PR programme.
MEDIA MIX CHECKLIST
1. What role will each component of the media mix play in your
total marketing effort?
2. On what do you base your decision to choose this particular mix of media?
3. Does each medium reach your intended audience?
4. Have you got the balance right?
5. Are you trying to do too much with too few resources?
6. Are you trying to reach non-essential targets?
7. Have you looked at cheaper alternatives?
8. Do you want to use the same media as your competitors?
9. Are you creating sufficient differentiation from your competitors?
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Managing your business > Marketing your business
Here are some creative ways of using your
business cards:
? Add a business card to every single
bill you pay. The cost is minimal, and
you never know who is on the
receiving end at the electricity
company, phone company, insurance
company, credit card company,
stationery supplier or professional
association
? Hand-deliver your card to every house
within walking distance of your home
and office. It’s only natural for people
to want to know what their neighbours
do, and you never know who they
know
? Pin your card on free community
boards in supermarkets, colleges and
libraries
Don’t forget that your business card has
two sides! Use the reverse side to your
advantage – a slogan, a quotation, details
of your range of products/services, a
calendar, emergency phone numbers, or
anything else that could spark extra interest
in your business.
BUSINESS CARDS
The minimum requirement of any small
business is to have business cards.
Your business card has a multitude of
useful functions:
? Provides core information on your
business
? Projects your business image
? Leaves a reminder when you’re not
there
? Serves as a referral tool
Your business card could be your most
valuable marketing tool. Take them with
you everywhere, hand them out generously,
and you never know – the next card you
give out could bring you your biggest
customer yet.
Remember that your official job title is less
important than a description of what you
do:
? “Assertiveness and confidence
building trainer” is more informative
than “Trainer”
? “Expert in designing engineering
prototypes” is more informative than
“Engineer”
6(I) PRINT MEDIA
BUSINESS CARD CHECKLIST
1. Look at all the business cards
you have collected . which ones
stand out?
2. If you have a logo, can it be
reproduced in the business card
format?
3. Put the most important
information at the top.
4. Don’t forget your full contact
details, including dialling code.
5. Don’t forget your mobile phone
number.
6. Use a business slogan, if you
have one.
7. Is it appropriate to have your
photo or a caricature of you on
the card?
8. Do you want to add the logo of
a professional organisation you
belong to?
9. Will colour add to your message?
10. Use a good quality heavy card
for extra durability.
11. Consider using an alternative
material to paper/card, such as
plastic, cork, wood, and so on.
12. Don’t try and cram in too much
information.
13. Make sure the information is
easy to read.
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Managing your business > Marketing your business
BROCHURES, FLYERS, CIRCULARS
A brochure is a business tool that talks
about the business when you’re not there.
Your brochure explains what your business
is all about and how your product or
service can be of benefit. And like ads,
brochures can be either image-based or
sales-based.
Before you rush off and have a brochure
made, there are some questions to ask:
? Why do you need a brochure?
? Who is the brochure aimed at?
? How will the brochure reach your
target market?
? Will a brochure convince your target
market to do business with you?
Here is an example (right) of a brochure
text from a venture management company
that wished to set out its stall for the
benefit of potential customers. The
brochure is neither too long nor too short –
it addresses a particular niche market, it
presents its marketing messages concisely,
and it avoids unnecessary waffle.
Flyers or circulars are a useful and low-
cost way of highlighting special offers,
sales, new product announcements and
the like. The best place to display flyers
and circulars is in non-competitive
locations where customers can pick them
up (such as your chamber of commerce)
or where they can see them (on bulletin
boards).
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We help companies access markets and launch new initiatives, and we work closely with
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Our ventures
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Our team
The Prime Mode team includes specialists in engineering, innovation, business development,
project management, marketing, finance, operations, systems integration, outsourcing,
licensing, and human resources. The breadth of our capabilities enables us to add value to
the “old” and “new” economies, across multiple industries.
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Managing your business > Marketing your business
DIRECT MAIL
Direct mail is used when you wish to target
a specific, named individual. Whether you
are sending a direct mailer to one person
or one thousand, you have to be sure that
you are crystal clear in your message.
Look at the checklist, and incorporate all
the elements into your letter. The best
advice is to get a professional to write the
text and the accompanying letter.
Remember, direct mail pieces can be in
letter form, or in the form of response
coupons, envelopes or other innovative
formats.
ADVERTISEMENTS
Print ads are published in a variety of
formats: local newspapers, national press,
free newspapers, trade publications, local/
national consumer magazines, and
programmes (sports, cultural).
The cardinal rule with print ads is: Don’t
confuse ego with effectiveness! There is
only ever one justification for spending
your hard-earned cash on a print ad –
that it reaches your target market. Your ad
must effectively deliver your marketing
message and bring in the customers. You
must avoid other reasons, such as:
? You like seeing yourself/your business
in print
? You want to impress your family and
friends
? You want to do a favour to the owner
of the publication
Too many small businesses instinctively
believe that the best way to advertise their
existence is by running an ad in a local
newspaper. Newspaper advertising can be
the right solution, but it is not the only
solution, nor necessarily the best solution.
BROCHURE CHECKLIST
1. Collect brochures from other
companies, see what you
like/don’t like, and tell your
designer.
2. Hire a professional writer to
write your brochure.
3. Make sure your USP is reflected
powerfully.
4. Your headline must cause
enough interest to make the
reader want to read further.
5. Don’t be scared of long
headlines.
6. Make liberal use of subheadings
throughout the document.
7. Use as little or as much text
needed to tell your story.
8. Keep the tone enthusiastic.
9. Use testimonials.
10.Keep sentences and paragraphs
short.
11.Your logo alone can appear on
the front cover.
12.Your logo and company details
should appear on the back.
13.Always proofread your brochure
before printing.
14.Reread the brochure and see
whether you as a customer
would be attracted by what it
says.
15.Test the text with some
potential customers.
DIRECT MAIL CHECKLIST
1. Use an opening headline that
grabs the reader’s attention.
2. Identify the reader’s problem,
generate a “That’s exactly how
I feel” response.
3. Tell the reader that you can solve
their problem.
4. Convince the reader you have the
credentials and the experience to
provide the solution.
5. Detail the benefits your reader
will gain from your product or
service.
6. Introduce testimonials from
satisfied customers.
7. Make the reader feel that he or
she is missing out by not using
your product or service.
8. Guarantee money-back
satisfaction.
9. Spell out what the reader should
do to contact you or to order
your product/service.
10.Add a PS – they always get
noticed.
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Managing your business > Marketing your business
Here is an example of how a small firm of
solicitors used the local newspaper
because they were short, clearly focused,
effectively to put across their marketing
messages. These are four of a series of
ads that was part of an awareness
campaign for Morgan & Morris Solicitors
(the name is fictitious, the ads are real).
Note how the headlines are designed to
attract initial attention, while the short text
tells readers in a nutshell why they should
come and pay a visit to Morgan & Morris.
The ads achieved maximum impact
because they were short, clearly focused,
and invited immediate action –
“call in today”.
Far right is an example of an ad from a
small supermarket. It contains a whole
string of sales messages that are designed
to attract the attention of shoppers thinking
of doing their christmas shopping.
Many local newspapers offer a special
price for 1-, 2- or 3-page announcements
for new launches, new management, new
staff, new service, new location,
renovation, and so on. The way it works is
that the publication gives you editorial
space, and you ask your friends, business
colleagues, suppliers and major customers
to cover the cost of the page by taking an
advertisement.
Be careful. It is tempting to do this, but
the question must be like before: is this
for your ego or will it be effective?
Don’t accept the print media price lists as
definitive. You will usually be able to
negotiate a better deal with local
newspapers. If you find them too
expensive and too inflexible, threaten to
move your advertising to rival publications.
IT’S GOOD TO HAVE THE PROFESSIONALS
ON YOUR SIDE
Whether you need advice in property law,
business law, personal injuries, family law or
wills, you want to be reassured that your
needs are fully understood. That’s why you can
rely on the experience of the professionals at
Morgan & Morris. Our team of skilled solicitors
and support personnel is here to offer you
sound and sensible advice. Come in and talk
to us.
LEGAL ADVICE WITHOUT THE TRAUMA
Seeking legal advice can be a traumatic
experience. That’s why it’s good to rely on the
professionals at Morgan & Morris. Whether you
want help with property law, business law,
personal injuries, family law or wills, our team
of skilled solicitors and support personnel is
here to offer you sound, sensitive advice.
Come in for a chat.
PROPERLY TRANSACTED PROPERTY
TRANSACTIONS
When it comes to buying, selling, renting or
leasing property, you need to be sure that
you’re getting sound legal advice. That’s why
you should talk to the professionals at Morgan
& Morris. Our team of skilled solicitors and
support personnel will advise you on
conveyancing and all other aspects of
property transactions.
YOUR FAMILY WILL THANK YOU WHEN
YOU’RE NO LONGER AROUND
Neglecting to make a Will can cause your
family unnecessary hassle. The responsible
way to settle your estate is to make a Will
now. Call in today to Morgan & Morris, and ask
our team of skilled solicitors and support
personnel to help you draw up your Will. Your
family will thank you when you’re no longer
around.
WHATEVER YOU NEED FOR
CHRISTMAS, YOU’RE SURE TO FIND
IT AT MORGANS
You’ll love our turkeys, hams, spiced
beef and everything else for those
special seasonal recipes.
You’ll love our fresh beef, lamb and
pork products, as well as our
mouthwatering sausages.
You’ll love our huge selection of wines,
beers and spirits in our off license –
look for superb value labels from
Spain, Argentina and Chile.
You’ll love our glorious choice of
confectionery items at cost price –
that’s right, cost price!
You’ll love our colourful fruit and veg
displays, our magnificent deli section,
top value groceries, babycare products
and household items.
You’ll love our Christmas cakes that add
such fun to your Christmas meals.
You’ll love our Gift Vouchers from £5 to
£50, the perfect thank-you gift and
stocking-filler.
Morgans – taking the hassle out of
christmas shopping.
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Managing your business > Marketing your business
Ads in Yellow Pages and other
directories
Some questions to ask yourself:
? Should you advertise in the Yellow
Pages?
? How big should your ad be?
? In which category(ies) should you
advertise?
? In which editions of Yellow Pages
should you advertise?
? Does your target market use Yellow
Pages to look for your type of service?
There is no straightforward answer to these
questions. Some businesses will tell you
that their Yellow Pages ad generates a
sizeable proportion of their custom. Others
will tell you that the Yellow Pages is a
waste of money. Your problem is
discovering whether Yellow Pages is an
effective option for you and for your type of
business.
For some honest feedback, look in the
Yellow Pages of an area far from your own,
where you pose no competition. Phone
some of the bigger advertisers in your
category, and ask the owners whether the
expense justifies the results.
Another thing to be wary of . think
realistically before you pay for insertions
outside your area. The deals you may be
offered may be tempting, but there is no
point being in any edition that does not
reach – and is not read by – your target
market.
CASE STUDY
Jason had worked as a copywriter
(the person who writes the words of
advertising) for an international
advertising agency, and was setting up
as a freelance copywriter.
He assumed that the Yellow Pages was
the place to advertise. However, there
was no Copywriters category. The sales
rep soothingly suggested Copyright
Agents & Consultants – but he was only
displaying his ignorance, since
copywriting has nothing to do with
copyright. The rep then suggested
Advertising Agencies – but Jason was
not an ad agency. The rep suggested
Editing Services, Word Processing,
Graphic Designers and Design & Image
Consultants – but none of these are
copywriting either.
In the end, Jason placed much less
expensive ads in two media directories
that had a Copywriters category.
CASE STUDY
Sophie owned an accountancy and tax
consultants office in a small town.
She was approached by the sales rep of
a major Sunday newspaper that was
planning a county supplement. At first,
Sophie was very excited at the prospect
of national exposure for her business,
especially since they promised to
publish her photo together with
editorial information.
When she asked her marketing
consultant for advice, he asked her a
series of questions: “How big is the
circulation of the paper inside the
county? How many of the potential
customers in the county read this
paper? How many people outside the
county will read the special
supplement? How many people inside
or outside the county will realistically
decide to move their business to Sophie
as a result of seeing her photo in the
supplement?”
A chastened Sophie realised that the
temptation to spend money on an ad in
the supplement was based on ego, not
on a realistic assessment of how many
new customers the ad would draw.
PRINT AD CHECKLIST
1. Does the publication reach sufficient numbers of your target market?
2. Will your ad stand out among the clutter?
3. Can you afford to run a series of ads?
4. Have you used a bold headline that grabs attention and tells your reader that you
can help them?
5. Have you given enough attention to the content?
6. Have you told your readers exactly what you are offering them?
7. Is there enough emphasis on the benefits of your product/service?
8. Have you told them how others (and which others) have benefited?
9. Have you told them what they must do to obtain what you offer?
10.Have you made it easy for them to find you/contact you?
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Managing your business > Marketing your business
Solution
Stick to your core area of competence. If you don’t want unprofessional
writing, let a professional writer write your ad, brochure and other
print media.
Unless you want wasted time, costly rewrites and redesigns, you should
appoint a senior decision-maker within your organisation (this could be
yourself) to be involved in the project from the very beginning.
Remember that less is very often more. The function of most brochures
is not to sell, but to generate interest and to get potential clients to
contact you. Keep the text simple, compact and relevant.
Off-the-shelf software can make you believe that you are a
real designer, but you might end up with an uninspiring
design that undermines your image.
SOME COMMON ERRORS WHEN PLANNING YOUR PRINT MEDIA
PRINT MEDIA CHECKLIST
Error
Trying to write your own material.
Allocating responsibility for the
brochure/website project to someone too
junior.
Trying to cram as much information as
possible into the brochure.
Saving money by using a desktop publishing
software programme.
Form of advertising
Business cards
Ad in local newspapers
Ad in national press
Ad in trade publication
Ad in free newspapers
Ad in consumer magazines
Ad in programmes
(sports, cultural)
Ad in Yellow Pages
and other directories
Sales brochures
Flyers and handouts
Direct mail letter
OTHER
Why is this
appropriate for
your business?
Why is this not
appropriate for
your business?
How will you
measure the
effectiveness of
this ad?
What do you want to
achieve from this
ad?
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Managing your business > Marketing your business
A big advantage of PR is that it costs
much less than paid-for advertising. For
small businesses, one of the best vehicles
for spreading the word about your
business is the local media – newspapers
and radio. Editors welcome news of local
interest. If you can provide them with
something newsworthy, there is a good
chance that they will print it or broadcast it
– which will add to your public profile and
widen the number of people exposed to
your business. As the case study shows, a
local story can sometimes become a
national story.
You need to distinguish between proactive
PR (deliberately and consciously setting
out to make your business well known and
well liked) and passive PR, where people
get to like your business without you
having to do anything specific to
encourage them. We return to passive PR
in Chapter 8.
The goals of PR are:
? To build a relationship with the public
? To mould a positive opinion about you
and your business
? To bolster your image
? To get you noticed by potential
customers
? To make existing customers feel good
that they work with you
In addition to targeting your existing and
future customers, PR is also aimed at:
? The local and national business
community
? Local and national media
? Your suppliers
? Local government
? Financial institutions
? Trade organisations
? Your competitors
? Your own staff (“internal PR”)
Good PR also impacts on the people within
your organisation. It reinforces their
motivation and pride to be working with a
successful company like yours.
6(II) PR (PUBLIC RELATIONS)
CASE STUDY
Joe ran an auctioneering and
property business, and was given
the exclusive rights by a builder to
sell a new 50-home estate.
On the morning that the sale of
Phase I commenced, Joe found
huge crowds outside his office. To
alleviate the crush, he placed some
benches out on the pavement, and
ordered tea and sandwiches to be
given to all those waiting. Sensing
a media opportunity, he invited a
freelance press photographer to
record the unusual scene. Several
major national papers featured the
photo and the story, and suddenly
the whole country knew about Joe
and his business.
This had two important PR
consequences. Joe’s standing in
the local business community was
enhanced, and builders in other
counties approached Joe to use his
flair to sell their properties.
EXAMPLE OF GOOD PR:
You run a PC repair business, and you
manage to rebuild some discarded PCs,
which you donate to a local school for
handicapped children.
If you deliberately publicise this, the
publicity surrounding your generous deed
can generate positive publicity for your
business.
EXAMPLE OF BAD PR:
If one of your staff left your business and
cited racial harassment as the reason, the
publicity surrounding the claim could have
a negative impact on your business – even
if the claim is totally unfounded.
You will find it harder to recruit staff, and
some of your customers may wish to take
their custom elsewhere.
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Managing your business > Marketing your business
read it, check off how the basic ingredients
were incorporated to persuade editors of
the professional media that this was an
important story.
PUBLIC SPEAKING
If you can overcome your fear of public
speaking, there are some valuable PR
rewards awaiting you. Business and civic
organisations are always looking for
speakers for their meetings, and you can
cultivate a reputation as someone willing to
talk about your area of expertise. Offer to:
? Give a seminar
? Open a school trade fair
? Give a welcome speech to a foreign
trade delegation or visiting dignitary
? Deliver a report to a franchisees
meeting
ARTICLES
Newspapers and other publications often
welcome articles containing helpful tips.
Submit a simple problem/solution-style
article, a how-to article or a free advice
article related to your product or service.
State the problem, and then share some
insightful tips. At the end of each article,
include an identifier paragraph listing your
name, company, what you do and your
contact details. This will allow readers to
contact you for more information about
your services.
MEDIA RELEASE
Once you have found an angle for your
story, you need a media release that will
prompt the media to use it. Basically, a
media release is a pseudo-news story that
highlights something newsworthy about
your business in a language familiar to the
journalist.
Editors judge an item to be newsworthy if
they believe that their readers or listeners
will find it interesting, useful, entertaining –
or better still, all three.
Once you establish a reputation for
credibility with the local media, you will
find that they use a well-written media
release with almost no changes.
Remember that the media often needs you
as much as you need them. They need to
fill editorial space in their newspaper/
magazine, you can make their job easier.
The secret about getting a story into the
local media is to think like an editor. Ask
yourself:
? What can I write that will make this
story more useful to editors?
? How can I deliver my story in a
professional, courteous way?
Using your media release as the basis for
a story or news item is not the only thing
that editors can do. They can also decide
to send a reporter to interview you. An
interview with you in the paper or on radio
will further promote your public image.
There are several basic ingredients that
will improve the chances of your media
release generating positive publicity for
your business. The media release on the
next page was sent by iQon Technologies
to the professional/trade media. As you
OPPORTUNITIES FOR GETTING A
STORY IN THE LOCAL MEDIA
Ask yourself whether any of the
following apply to your business:
? Are you using a new or unusual
technology, procedure or
technique?
? Are you offering something
unique that no one else is
offering?
? Do you have something
controversial to say about your
market/industry?
? Do you have something
provocative to say about the local
business community?
? Do you have any special tips for
consumers?
? Can you offer any special insight
on a hot media topic?
? Have you won a big, complex or
unusual project?
? Are you involved in any charity,
school or other worthy
community organisation?
? Are you celebrating any special
anniversary (for example, “First
year in business”)?
? Have you taken on any new senior
personnel?
? Have you moved into
new/renovated premises?
? Have you won any professional
award?
? Have you launched a new product
line?
? Have you received a major export
order?
? Have you given a speech
locally/nationally/internationally?
What other opportunities are there
for getting your business
mentioned in the local media?
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Managing your business > Marketing your business
MEDIA RELEASE – SEPTEMBER 5 2002
iQon Technologies, Ireland’s number 1 Indigenous PC Manufacturer, launches new “Multimedia by Philips” X Series
Designer PC range.
iQon Technologies, Ireland’s largest indigenous computer manufacturer and the second largest supplier of consumer PCs
and laptops in Ireland, today launched the Multimedia by Philips X Series range of designer PCs.
Developed in conjunction with Philips Electronics, the X series represents a new concept aimed at bridging the design
gap between PCs and the latest consumer electronics products. Manufactured in a contemporary chrome and ivory
finish, the X series has its design foundations in a new monitor developed and launched by the Philips Consumer
Electronics team in Q1 of this year.
The design of the new X series is driven by a greater focus on the user’s overall audio and visual experience. Among the
new technologies incorporated into the X series are Real Flat CRT displays, Optical Mice, Dolby Digital surround sound
and DVD recorder drives.
iQon Technologies are the exclusive European manufacturers of the “Multimedia by Philips” PC range that was co-
developed with Philips Electronics in 1989. Multimedia by Philips is now the second-biggest selling consumer PC in
Ireland, and is rapidly gaining significant market share in the UK via iQon’s retail partner, the Argos Retail Group.
The launch of the X series comes just weeks after iQon Technologies moved into its new 32,000 sq.ft production and
distribution facility in Dundalk, which has tripled the company’s capacity. Two major brands are manufactured in the
Dundalk facility: the iQon brand, which includes Qompanion notebooks, Qonnect workstations and Qommand servers;
and the Multimedia by Philips brand of PCs.
iQon products are available via a nationwide network of independent resellers/dealers, as well as through retail chains
including Shop Electric, ESB, Electric World and others.
IQon products are delivered directly by iQon of behalf of these retail chains, and backed by a nationwide technical
support structure. The Multimedia by Philips X Series will be available from iQon retailers and resellers nationwide from
7 September 2002.
Ciaran O’Donoghue, head of sales and marketing: “Working with a company with the high profile of Philips, a
recognised global leader in consumer electronics design, was of undoubted value in the development of our exciting
new X series. With the PC becoming increasingly integrated into the fabric of everyday household life, particularly with
the advent of broadband and wireless technology, we see PCs as ultimately evolving in the same design-driven direction
as other consumer electronics products have done in recent years.”
For further information, please contact Ciaran O’Donoghue at 042 9327270.
Reproduced courtesy of iQon Technologies
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Managing your business > Marketing your business
INGREDIENT INGREDIENT iQON MEDIA RELEASE
Date
Catchy headline
Opening paragraph
Expand the story
Use third-person
Refrain from using
too many superlatives
Background paragraph
Secondary information
Quote
Contact details
If you don’t put the date, editors
won’t know whether the story is out
of date.
You will need a headline that
immediately appeals to a busy
editor.
Not more than 2 sentences – must
contain the entire story in a
nutshell, and must make it
worthwhile reading on.
Focus on the main story that is the
subject of the media release.
“The company plans” rather than
“we plan”.
The editor must be able to
distinguish real news from
promotional spin.
At least one paragraph must give
your story background and context.
Mention other important
information and anything else that
portrays your business in a positive
light.
Quote yourself, a senior partner/
employee, a major client, or anyone
else whose comments carry weight.
Name and phone number/email of
contact person.
When editors see the date and the word “today” in
the opening paragraph, they know that this is hot
news.
Includes: company name, something about the
company’s achievement, name of the new product,
and one of the world’s most recognised brand names
(Philips).
If you only read paragraph #1, you know what this is
all about.
Paragraphs #2 and #3 give more details about the
new range of designer PCs being launched.
The whole media release, except the quote, is
written in an impartial and objective journalistic
style.
Words like “fantastic”, “brilliant” and “amazing” that
were used in the advertising for this range have
been dropped.
Paragraphs #4 and #5 explain something about the
company, its production capacity, its success until
now, and the all-important Philips connection.
Paragraph #6 provides information on availability.
This quote from the head of sales and marketing is a
legitimate excuse to promote the company and even
hint at the company’s vision.
If editors want more information, they know exactly
whom to contact.
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Managing your business > Marketing your business
TRADE PR
Your PR efforts need not be exclusively
targeted at the local (or national) media. It
might also make sense for your business to
cultivate the editors of industry and trade
publications. For example, if you have a craft
business, and you have a story to tell, make
yourself known to the editors of whatever
publications speak to your particular market.
NEWSLETTERS
A newsletter can be:
? A great promotional tool
? A valuable source of information for your
customers
? Relatively inexpensive to produce
? A way of making your company look
bigger than it really is
A newsletter allows you to show off about your
business in a legitimate way, and allows you
to feature any aspect of your business that
you want to push. The newsletter is halfway
between a brochure and a media release,
and gives you more flexibility than either.
Even one-person companies can produce a
newsletter – it doesn’t have to be longer than
two sides of A4.
There is little point sending out newsletters on
a haphazard basis. You must adopt a regular
publication schedule, which is normally at
least twice a year, but can also be quarterly or
even monthly. The whole idea of a newsletter
is to remind customers and potential
customers that your business is alive and
kicking.
If you don’t stick to a regular schedule, you
could be sending out precisely the opposite
message.
When you produce PR material – media
releases, articles, radio interview
transcripts, speeches, and so on – make
sure you exploit them (see checklist
below).
EXAMPLE 1:
If you run a small animal clinic, you
might write about “Ten Ways to Help
Your Pets at Christmas-time”.
EXAMPLE 2:
If you manufacture tables, you
might write about “Ten Tips on
Furniture Care”.
EXPLOITING MEDIA MENTIONS
CHECKLIST
1. Distribute copies to your customers.
2. Distribute copies to your bank manager.
3. Distribute copies to other interested
parties.
4. Distribute copies to your staff.
5. Highlight a particularly complimentary
comment or phrase.
6. Include a copy with every invoice.
7. Post a copy on your website.
8. Include a copy in any media
kit/presentation folder.
9. Frame a copy for the waiting area of
your business.
10.Frame a copy in your office.
CASE STUDY
Mona went to her local bank to request a
short-term bridging loan to tide her over a
temporary liquidity problem in her graphic
design business.
Her bank manager rummaged through her
file and found a copy of 2 articles from the
local press that she had forwarded to him.
“I see that you won a big contract from the
Chamber of Commerce,” he said, “and I see
that you gave a seminar to the Empowering
Women in Business network. I’m glad your
business is thriving.”
By keeping her bank in the PR loop, Mona
had created a favourable environment for
her business. When she needed something
from the bank, the positive media image
proved very useful indeed.
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Managing your business > Marketing your business
If you do intend to produce a regular
newsletter for your business, remember:
Advantages
? Ideal vehicle for addressing external
(customers, suppliers, general public)
and internal (employees) audiences
? Allows you to speak less formally to
your readers, scope for humour
? Gives you the opportunity to profile
leading clients
? Useful way of announcing new orders
Disadvantages
? Someone in the company must be
designated as being responsible for
collating the material and co-
ordinating with the copywriter and
designer
? Chatty style could be
counterproductive, you could be
perceived as being not serious enough
? You must publish at least twice a year,
otherwise there is no continuity
? You must have something fresh and
interesting to say in each issue
NEWSLETTER CHECKLIST
1. Most business owners do not find
the time to produce the
newsletter themselves.
2. Asking someone else within the
organisation often means that
the job never gets done.
3. The best solution is to hire a
writer to write your newsletter.
4. Keep the content interesting and
informative.
5. Give readers something of value
(business tips, humour, special
offer).
6. Encourage feedback (contests,
letters to the editor).
7. Avoid too much text.
8. Use plenty of visual material
(photos, charts).
9. Use an easy-to-read typeface
size.
10.Use a conversational, personal
style of writing.
PR CHECKLIST
Form of advertising
Press releases
Newsletters
Seminars at professional
events
Guest speaker (Chamber)
Sports sponsorship
Cultural sponsorship
Event sponsorship
OTHER
Why is this
appropriate for
your business?
Why is this not
appropriate for
your business?
What do you want to
achieve from this for
of PR?
How will you
measure the
effectiveness
of this ?
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Managing your business > Marketing your business
Radio advertising extends beyond radio
ads. Most local stations offer plenty of
sponsorship opportunities:
? The local business news is brought to
you courtesy of …
? Lunchtime favourites are brought to you
courtesy of …
? The weather forecast is brought to
courtesy of …
These sponsored messages can be ideal
for a service business looking or greater
name recognition and public profile.
Enquire at your local station to see what
deals are available.
CINEMA
Like radio advertising, cinema advertising
can often be neglected by small
businesses. The advent of multiplex
cinemas means that there are now more
opportunities to get your message across
to cinema audiences. Cinema advertising
is not cheap, but it is nothing like as
expensive as TV.
Naturally, cinema advertising – like any
advertising medium – is only suitable for
particular target markets. Cinemas attract
mainly younger audiences. If these are the
people you want to reach, then cinema
advertising may make sense.
RADIO
You probably listen to the radio more often
than you think. In your car, at home, at
work. And if you listen to the radio, many
of your customers do too. Radio
advertising has the potential to reach a lot
of people, and as long as they are the
people you are interested in, you can use
well-written highly-focused radio ads to
your advantage.
Successful and effective radio ads need:
? A strong introduction
? A good offer
? A clear and concise description of the
benefits
? Conversational tone – remember that
the words on paper have to be spoken
? Simplicity – the listener must absorb
every word with minimum effort
? A call to action
Often, radio can be used to support your
advertising in another medium. For
example, “Answer the questions in the
special coupon in your local paper, and
you can win a free weekend in Paris”.
6(III) BROADCAST MEDIA RADIO
RADIO CHECKLIST
1. Is your product or service
suitable for radio advertising?
2. Does your product require a
visual demonstration?
3. Can your product or service be
described in 30 seconds?
4. Can you use radio to generate
leads?
5. Can you use radio to persuade
people to call you (free
information, free estimate,
free sample)?
6. Is your budget big enough to
afford a sustained radio
campaign?
CASE STUDY
Patricia runs a book and record
store. She knows that each
Christmas, crowds of kids (and their
parents) are going to flock to the
local cinema to see the latest Lord
of the Rings and Harry Potter
movies. Patricia books a 3-month
slot at her local cineplex, covering
the period early November to early
February. In her 60-second cinema
commercial, she informs audiences
eagerly waiting to watch the movies
that she carries a large range of
Lord of the Rings and Harry Potter
books, CDs, DVDs, videos and other
merchandising. Her message is
hitting her target audience just at
the point when their attention is at
a peak.
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Managing your business > Marketing your business
TV
TV advertising is usually too expensive for
small businesses to afford. However, with
the growing fragmentation of satellite and
cable TV, there may be opportunities in
niche markets.
A cut-price alternative to TV advertising is
free TV advertising! If you can find an
angle that TV editors could regard as
newsworthy, you might gain valuable PR
for your business.
CASE STUDY
An internationally famous pop star visited Israel several years ago to
give a concert. Over the weekend, he asked to go to a toy store. All
the media followed him to a toy store near his hotel. The entire
country soon discovered in which toy store the pop star spent $3,000
in half an hour. For years afterwards, the store owner had the TV
coverage of the visit playing on closed loop video in the store.
BROADCAST MEDIA CHECKLIST
Form of advert
Local radio
National radio
TV
Cinema
OTHER
Why is this
appropriate for
your business?
Why is this not
appropriate for
your business?
What do you want to
achieve from this
advert?
How will you
measure the
effectiveness
of this advert?
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Managing your business > Marketing your business
Reasons for not having a website include:
? Your customers don’t use the web
? Expense of creating the site
? Expense of maintaining the site
? Expense of updating the site
There are some key questions you must
ask yourself before pouring a small fortune
into establishing an e-presence:
? Will my customers consider that I am
not a serious business unless I have a
site?
? Am I jumping on the website
bandwagon because everyone else is?
? Will my business genuinely benefit
from having my own site?
? Will my site be cost-effective?
? Is my type of business suitable for a
web presence?
? Will I be able to update it regularly?
? Will my prospective customers look for
me on the web?
? Do my customers use the web?
? Do my customers expect to find
information on this kind of
product/service on the web?
? Will I use my website for information,
sales, or both?
There has never been a faster growing
marketing tool than the Internet.
Email is no longer a novelty, and today very
few businesses have failed to recognise
the speed and convenience benefits of
being able to send and receive emails.
Most email users are also familiar with the
World Wide Web, the millions of websites
out there in cyberspace. Anyone with a
business knows enough by now about the
web to ask themselves whether they
should have their own website.
The advantages of having your own
website include:
? It provides information on your
business 24 hours a day
? You don’t have to be on the other
end of a phone line if a prospective
customer wants to know more
about you
? It can help you attract new customers
? It can help you support existing
customers
? It allows you to sell your product/
service via electronic commerce
(ecommerce)
? It lowers your operating costs:
information dissemination, reaching
clients, servicing clients, selling
6(IV) ON-LINE MEDIA
NUMBER OF YEARS TO REACH
50 MILLION
RADIO
30 years to attract 50 million
listeners.
TV
13 years to attract 50 million
viewers.
INTERNET
5 years to attract 50 million users.
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Managing your business > Marketing your business
It is also very important to develop links
with other websites, whereby information
on your business appears on other
websites, and your website hosts
information on other websites.
When you are giving the design company
your brief for your website, make sure you
bear in mind the following facts about
online users:
? They appreciate good, clear design
? They seek helpful content
? They scan the screen rather than read
word for word
? They look for key words and concepts
? They like a personal, upbeat tone in
web writing
? They are turned off by boring,
longwinded writing
? They want shorter sentences, shorter
lines of text, shorter paragraphs and
shorter pages
? They like headings, subheadings and
bulleted text
If you decide that you do need a website,
how do you go about doing this?
Technically, it is possible to produce your
own website. But even if you have the
technical skills to do so, remember that
over 90% of non-professionally designed
websites fail to produce enough income
to return their software and hosting
investment. Remember too that the time
you spend on creating the website takes
away from your core business – unless of
course website design is your business.
You are better off seeking the professional
services of a web design company. Ask
around. Look at websites these companies
have produced. Call them up and ask
them if they are satisfied with the service.
Make sure you choose a company that
offers you:
? Name registration
? Good design
? Hosting
? Search engines
? Maintenance
? Special features, such as e-zines
(electronic magazines/newsletters),
pages designed as “doorways” to
maximise search engine and listing
service popularity, and online
shopping carts
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Managing your business > Marketing your business
Registering your site with search engines is
not enough. If you want to improve the
chances of people finding you on the web,
you must insert your website address
(URL) in every single marketing document:
? Print ads
? Fax cover sheet
? Invoices
? Business cards
? Business directories
? Trade publications
? On your shop/office window
To get extra mileage out of your answering
machine, use it to encourage people to
visit your website. At the end of your
message, say something like:
“For more information on our services,
please visit our website at ...”.
? They prefer the active voice: “We will
customise ...” rather than the passive
voice: “The product will be
customised for you”
? They don’t like having to guess who
you are – they want to know what you
do immediately, without having to
scroll through several pages
? They want to navigate your site easily
and quickly
? They want to be able to return to your
home page at all times
? They expect to find hypertext links
? They don’t want to see a replica of
your print brochure
ONLINE MEDIA CHECKLIST
Website
Website
Why is this
appropriate for
your business?
Why is this not
appropriate for
your business?
What do you want to
achieve from your
website?
How will you
measure the
effectiveness
of your website?
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Managing your business > Marketing your business
? Train stations
? Terminals
? Airports
? Seaports
? Sport venue advertising
? Beach and rest area advertising
? Golf course advertising
As always, the questions you must ask are:
? Will this work for you?
? Will your target market see it?
? Will your target market be influenced
by seeing your business advertised in
this particular context?
? Is it worth the expense?
? Is this the appropriate medium
for you?
Here are a few examples of businesses
that identified a particular outdoor/transit
medium to promote themselves:
There are plenty of outdoor and transit
opportunities for you to promote your
business:
? Your own delivery vehicles
? Billboards
? Shop/business signage
? Window posters
? Community notice board
? Bus advertising – side panels, rear
panels, interior panels, fully painted
buses
? Taxi advertising – side panels, interior
panels, fully-painted taxis
? Mobile billboards applied to small
trucks, trailers or bikes for two-sided
displays
? Bus shelters
? Other street furniture
? Bus stations
6(V) OUTDOOR & TRANSIT MEDIA
TYPE OF BUSINESS OUTDOOR/TRANSIT MARKETING MESSAGE
Shoe shop
Courier service
Sewing and
mending service
Sports shop
Mobile phones shop
Bus shelter
Delivery van
Community notice board
Sports venue (stadium)
Are your feet hurting you from so much
standing around?
Another package being rushed to its
destination – courtesy of ABC Couriers.
Sewing and mending at competitive prices.
We supply all your sports requirements.
You could be using your time usefully on the phone
right now.
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Managing your business > Marketing your business
OUTDOOR & TRANSIT MEDIA CHECKLIST
Form of outdoor/transit
advertising
Billboards
Window posters
Community notice board
Shop sign
Bus advertising
Taxi advertising
Mobile billboards
Bus shelters
Other street furniture
Bus stations
Train stations
Terminals
Airports
Seaports
Your own delivery vehicles
Beach and rest
area advertising
Golf course advertising
OTHER
Why is this
appropriate for
your business?
Why is this not
appropriate for
your business?
What do you want
to achieve from
this form of
advertising?
How will you
measure the
effectiveness of
this?
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Managing your business > Marketing your business
POS is less relevant for a service business,
except that the state of your office or
waiting room (tidy, untidy) can also
influence whether your customer
experiences a satisfying buying
environment.
Always ask yourself how you would react if
you were a stranger turning up in your
office.
GIVEAWAYS
You are certainly no stranger to
giveaways – just think how many
promotional pens you have received in
your life. Giveaways can be a useful
promotional tool if used discriminately.
To be effective, your giveaway must:
? Not cost too much
? Be relevant to your business
? Be durable
? Act as a permanent promotional tool
for your business
? Not put your customers off by
appearing too tacky
See the table on the next page for
examples of some giveaways.
PACKAGING
Packaging usually refers to the physical
enclosure in which you sell your product.
Good packaging:
? Attracts the customer
? Communicates product attributes
? Identifies the brand and seller
? Lists ingredients
? Makes the product easier to handle
Your packaging design can reduce costs
associated with storage, handling,
shipping, and pilferage. Packaging can
also refer to the overall impression that
your business makes, see Chapter 4 on
image.
POINT OF SALE
POS refers to the visual and audio
merchandising that a customer meets in a
shop, a warehouse, a showroom, or
anywhere else that products are on
display. Bags with your name/logo, flags,
banners, cut-outs, posters, signs and other
POS elements are designed to create
awareness of a product at the moment of
purchase.
You should only consider investing in POS
merchandising if you want to create a
satisfying buying environment that
stimulates an engaging customer
experience. If this is not critical to your
business success, then you should
consider alternative ways of spending your
marketing budget.
6(VI) SALES PROMOTION MEDIA
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Managing your business > Marketing your business
? Equipment, samples – The cost of
delivering these to the venue
? Time – You or your representative have
to spend valuable hours away from the
office. Think carefully before
committing yourself to this expense
If you believe that participating in a show
is critical to attracting the attention you
want, or if this show won’t be repeated for
a few years, go ahead.
If you like the idea of participating in a
trade show, but you’re not sure it will
produce dividends, maybe attend the show
as a visitor the first time round. You can
assess who the competition is, what they
are offering, how many people visit their
stands – and you can also use the
opportunity for valuable networking. Just
don’t forget to take along a stackful of
business cards!
EXHIBITIONS & TRADE FAIRS
There are 3 categories of exhibitions and
trade fairs:
? Events aimed at the consumer
? Events aimed solely at the trade
? Events aimed at, and open to, both
The commitment to participate in a trade
fair or exhibition is costly. You need to take
account of several other expenses in
addition to the hiring of the stand:
? Stand design – If you want your stand
to look professional, you need to
employ a designer to decorate the
stand, and you need to deliver the
stand to the venue
? Stand literature – Brochures,
giveaways, etc.
TRADE FAIR CHECKLIST
1. Is the expense justified?
2. Who will be attending the event?
3. Will the procurement decision-
makers be there?
4. How many visitors came last
year?
5. How many visitors are expected
this year?
6. Of these, how many will be
interested in your product/
service?
7. Are you only participating
because everyone else is?
8. Have you spoken to previous
participants to find out what
value they place on the show?
DESCRIPTION OF COMPANY GIVEAWAY
Insurance agency
Smoked Salmon company
Dental practice
Auctioneer
House builder
Umbrella on which is written “We’re Here To Protect You”.
Packet of toothpicks with company logo.
Dental floss with own name on the packet.
Free report: “How to obtain the best mortgages”.
Free information pack for new home owners.
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SALES PROMOTION MEDIA CHECKLIST
Type of Sales Promotion
Packaging
Shop/office signage
POS in-store
signage/posters
Bags and other
merchandising
Giveaways
Exhibitions and trade shows
OTHER
Why is this
appropriate for
your business?
Why is this not
appropriate for
your business?
What do you want
to achieve from
this form of Sales
Promotion?
How will you
measure the
effectiveness of
this?
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Small businesses can benefit greatly from
professional creative experts who
specialise in creating the visual and textual
messages that will attract your target
audience. The two most important
members of your hired creative team are
the copywriter (the words person) and the
art director (more commonly known as the
graphic designer).
The copywriter is a wordsmith, someone
who has a way with words. The
copywriter’s function is to act as a sort of
go-between for both you (the advertiser)
and your customer (the target audience).
The copywriter distils your marketing
message, and translates it into advertising
language that will persuade customers to
buy your product or service. In essence,
the copywriter is your mouthpiece, and
ensures that your marketing
communications are clear, consistent and
concise.
The copywriter writes the words for
several different media:
? Ads, brochures and other print media
? Websites
? Slogans, taglines, and brand names
? Direct mail letter
? Narrative and jingles for radio and
TV commercials
? Press releases
? Packaging text
? Instruction booklets
? Speeches
HOW TO MAKE EFFICIENT USE OF
MARKETING PROFESSIONALS
Now that you have examined your media
mix and decided which combination of
media to use, you have to decide who to
go to:
? You can go directly to the media
providers (local newspaper, local radio)
? You can wait until the media come to
you
? You can use the services of marketing
professionals
Going to the media directly is tempting,
because you assume that you can get it
cheaper than going through a professional
intermediary. The problem is that the
media might be good at selling space, but
not necessarily good at producing
professional quality advertising.
Even large companies do not have the
inhouse expertise to run their marketing
campaigns. Small businesses have even
less in-house resources, so it makes sense
for them to stick to their core business,
and to leave hired guns to look after the
marketing.
7. HIRED GUNS
CASE STUDY
Liz opened a new nail bar, and
decided to announce this via an ad
in the local newspaper. She went in
to their offices, gave in the wording
of the ad, and waited to see how
the ad turned out.
On the publication day, she was
disappointed to find that her ad was
hidden among much bigger ads,
that the wording she had used
seemed very unprofessional
compared to other ads, and that the
design of her ad was very
unexciting.
She had chosen what she thought
was the cheapest route, but in
terms of effectiveness, her ad was a
waste of money.
CASE STUDY
Chris was very flattered when he
received a call from a sales
representative of “New Millennium
Wales . The Essential Business
Directory”. They were offering him
an ad in the new edition at half-
price if he paid upfront.
Although Chris had not actually
come across this directory, he
understood from the sales
representative that every major
company in Wales had a copy. The
terms seemed very generous, so he
signed the contract.
It was only when the directory was
eventually printed 10 months later
(and 10 months after he had paid
for his ad) that Chris realised that
no one was actually going to use
this directory. By reacting to the
offer to advertise, rather than
proactively choosing to advertise,
Chris had given up control of his
media mix decisions.
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The printer (the human variety, not the
machine) is another professional with
whom you will have frequent contact. Not
too long ago, a small business that wanted
promotional or advertising work would go
to the local printer. Designers were
regarded as a costly luxury, so printers got
landed with jobs that they were often not
fit for. The advent of desktop publishing
has allowed many print operations to move
up the skills chain, and some printers can
now offer quite sophisticated design.
Before you decide whether to entrust your
material to a printer or a designer, take a
good look at their portfolio of work. If you
are happy with the output of the printer,
this may be a cheaper option.
If design is important in your business, it is
often worth paying the extra price for the
creativity, experience and expertise of a
professional graphic designer.
The PR consultant advises you on your PR
strategy. Your PR consultant can:
? Provide an external, objective
viewpoint or perspective
? Increase your overall visibility
? Support a specific
product/service/event
? Support your entire marketing effort
? Advise you when you are the target of
adverse publicity (crisis management)
? Strengthen community relations
Unless your business is in the creative arts,
don’t be tempted to write your own
promotional texts and marketing materials.
Copywriters do it better, because they have
mastered the language of your customers.
Also, don’t think that just because your
neighbour’s daughter majored in Eng. Lit.
at university, she’ll be able to help you with
the writing. Academics often make the
worst copywriters!
The graphic designer combines the text
written by the copywriter with graphics,
photos, illustrations, and other visual
elements to create marketing
communication for a variety of media. The
graphic designer understands the power
and the emotion of typefaces, shapes,
words, colours and photos. Today’s graphic
designers have access to computer the
software and computerised techniques
that can achieve dramatic results.
Designers can usually handle the entire
production cycle, from concept to final
execution.
You would go to a designer for:
? An ad, brochure or newsletter
? A logo
? Letterheads
? Posters
? A sign
? Business cards
? Packaging design
? Any other type of visual
communication
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When choosing your PR consultant, check
the chemistry! Make sure the people
working on your account understand your
business, and are sensitive to the PR
image you want to project.
PR consultants price their services in a
variety of ways:
? Hourly fee
? Minimum monthly fee based on
estimated number of hours per month
? Project fees for a one-time project
(such as the opening ceremony for a
new building)
? Retainer fee
Check which is the most appropriate for
you.
Other professionals involved in the creative
process include:
? Web designers
? Photographers (including press
photographers and commercial
photographers)
? Illustrators and animators
? Marketing consultants who provide
expertise covering the broad spectrum
of marketing
? Ad agencies
? Audio/visual experts (musicians,
sound, video)
COMMON ERRORS IN WORKING WITH MARKETING PROFESSIONALS
Error
Leaving it too late to
involve the writer and the
designer.
Debating whether the text
or the design should come
first.
Asking your designer or
printer to “look over the
text”.
Giving your brochure to a
web designer and saying,
“Just reproduce this on
my website”.
Solution
Bring your key professionals (copywriter and graphic
designer) into the loop at an early stage. Involve them in
identifying and formulating your marketing messages and
target audiences.
There is no need to waste time on this chicken-and-egg
question. It doesn’t matter which comes first, so long as
your copywriter and your designer synchronise their work.
Just as you wouldn’t expect your copywriter to do the
design, don’t expect the visual professionals (web designers,
graphic designers, printers) to write your text.
The visitors to your website look for information in a
different way than readers of your brochure. Web content
(text) should be specifically written by your copywriter for
this purpose.
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Word-of-mouth referrals can come from
different sources:
? Existing customers – As we saw in
the restaurant example, a satisfied
customer can give the most authentic
endorsement of your product or service
? Friends and family – These are the
people who are naturally predisposed
to recommend you to others. But
again – don’t assume anything.
Galvanise them into sending you
referrals
? Professional colleagues – These are
people who work in your field, possibly
offering complementary but not
competitive products and services. For
example, if you are a physiotherapist,
your sources of referrals would include
orthopaedic specialists, GPs, massage
therapists, physical therapists, local
gym owners and sports coaches
? Influencers – People whom you come
into regular contact but who do not fit
the other 3 categories. Examples
include:
Neighbours
Clergy
Other small business owners
Corporate business executives
Accountants
Solicitors
Bank staff
Health club members
Former colleagues
Sports club members
Members of the Chamber of
Commerce
These sources of referrals: existing
customers, family, friends, professional
colleagues and influencers – also describe
the networks, the groups of people you
associate with at varying levels of intensity,
that every small business must cultivate.
We all feel special when the waiter in our
favourite restaurant greets us by name. We
all like being asked whether we want “the
usual” on the menu. We feel valued, and
we want to visit that restaurant again and
again. And because we want our friends to
share the same special treatment – we tell
them about it.
There are few more powerful ways of
reaching new customers than a personal
endorsement from a satisfied customer.
Word-of-mouth referrals that give you
greater exposure in your market can
become a valuable marketing tool for small
businesses.
Research shows that referrals can account
for up to 50% of your business. Don’t miss
the opportunity of milking all your networks
to create a steady stream of word-of-mouth
referrals.
REFERRALS & NETWORKING
Referrals are an ideal marketing tool
because:
? They are an inexpensive way of
gaining new business
? They come from a credible third-party
with first-hand experience of doing
business with you
? There is a high probability that you
can convert referrals into business
? People who refer others to you are
more likely themselves to work with
you
8. WORD-OF-MOUTH
CASE STUDY
Tom is a builder who received a
recommendation from another
builder to use the services of Dick
the cleaner.
Now Bob calls on Dick to clean every
single property he completes.
Another builder recommended to
Bob that he use the services of
Harry, the cabinetmaker. Now Tom
calls on Harry to build and install
cabinets in every home he
completes.
Everyone in the loop is happy. Tom
is relieved to have found top-class
professionals, while Dick and Harry
are delighted to have a solid client
like Tom.
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Don’t make the mistake of believing that
satisfied customers automatically pass
your name to other customers or
businesses. If you want referrals, you have
to actively ask for them.
In the best case scenario, relationships
that started out simply as networking/
referral relationships can become semi-
permanent.
To create a systematic referral generation
and tracking system, you need:
? Business cards that spread the word
concisely
? A tracking method that teaches you
who is a good source and who is a
waste of time
? Fast follow-up of all leads and
referrals
? To express your thanks to the source
of the referral
Acknowledging referrals with a “thank you”
encourages people to continue referring
customers your way. Avoid giving gifts or
cash, because it could be construed as
paying a commission.
POTENTIAL SOURCES OF REFERRALS
1
2
3
4
5
6
7
8
9
10
Customers Family/friends Professional colleagues Influencers
Write down the names of at least 10 people in each category
POTENTIAL SOURCES OF REFERRALS
Name of
person to
whom you
gave business
cards
Date you gave
them the card
Quantity of
cards
Results
(names/dates)
Date that you
thanked the
referral source
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Think of every encounter with prospective
customers as an interview situation. You
are being interviewed for your suitability to
supply your product or service. And if you
want to turn prospects into real customers,
you need to shine at your interview.
If you lack the confidence to sell yourself
and enter interview mode every time you
meet a prospective customer, have a friend
video a mock encounter. Study it. Get over
the embarrassment. Learn the difference
between passive and proactive networking,
then get out there and promote your
business at every opportunity.
When you own your own business, you are
always selling yourself. Every time you
meet someone, whether socially or in
business, you are not just a spouse, a
parent, tall, short, funny or serious. You
are a business owner looking for
customers.
Remember all those times you went for a
job interview? You developed some fine
interview skills. You were careful to make
a good impression on the interviewer.
? You dressed smartly
? You were well-groomed
? Your shoes were clean
? You were upbeat
? You sat attentively
? You answered in a focused manner
? You smiled and were polite
NETWORKING CHECKLIST
1. Shake hands with everyone you
meet at business functions.
2. Exchange business cards with
everyone you meet.
3. Write to past customers and tell
them you miss them.
4. Never throw away prospect
names and addresses.
5. Most people throw away most
advertising material – so keep
sending it.
6. Keep updating your contact list.
7. Send customers/prospects
articles of interest they may have
missed.
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PASSIVE NETWORKING
“By the way, I’ve just opened a new
business.”
Joining the Chamber of Commerce.
Going to business events/functions and
standing by yourself at the side.
Telling your family and a couple of friends.
“Hello, I’m Susan, I’ve opened my own
business in the office supplies sector,
and I would love to have the opportunity
of discussing with you how we could do
business together. Here are some of my
cards for you to hand to any colleagues
who might be interested in my services.
Do you have a card?”
Offer to sit on a Chamber committee. You
will be welcomed with open arms. Use
every opportunity to let Chamber
members and staff know what you do.
Sponsor a Chamber breakfast meeting or
the Chamber newsletter.
March up to people, introduce yourself,
shake hands, talk about your business,
hand out business cards.
Contacting everyone you know, including
all of the business and personal contacts
you have developed over the years. Ask
them to spread the word about your new
venture.
PROACTIVE NETWORKING
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You have already invested in marketing tools
to motivate people to want to work with you.
Now you need your selling prowess to turn
these people into customers and your
encounters into sales transactions. One of
the secrets of selling is to understand where
your customer is coming from. Customers
can be antagonised if they perceive that all
you’re trying to do is convince them to buy
your product or service. It is more useful to
think of how you can help customers get
what they really want. Once they know that
they can get what they’re looking for from
you, your selling challenge is to make sure
that when they look for it, they come to you.
Have you ever had a washing machine die
on you? If so, you’ll know that ads for
washing machines suddenly jump out of the
newspaper and shop windows. Why?
Because you want a new washing machine,
and you are attuned to information on
where to buy one.
It’s the same with selling. Always ask
yourself what your customers are looking
for, then help them find it by pointing them
in the direction of your business.
To successfully close a sale, you need to be
very, very persistent. Some products or
services can take several discussions with
the same customer before a sale is closed.
Sometimes nine people will turn you down
before someone says yes. You need a lot of
self-motivation to overcome these rejections
– but unless you determinedly keep trying,
you won’t get to the tenth.
For an example of unbelievable persistence,
spare a thought for Colonel Harlan Sanders,
the man behind Kentucky Fried Chicken
(KFC). (See far left).
SELLING
When you run a small business, you
discover that you never actually stop
selling. Wherever you meet your customers
or potential customers – at your place of
business, in the street, in their premises,
in the pub, at Chamber of Commerce
meetings – you are selling. This is even
more the case in smaller communities,
where you are known by a greater
proportion of the population.
Selling operates at several different levels
simultaneously:
? You are creating a relationship of
friendship and trust with the customer.
At the end of the day, people buy from
people they like
? You are exploring the customer’s world,
mindset, wants and expectations
? You are establishing a communication
channel based on mutual respect
? You are bridging the gap between what
the customer wants and what you can
deliver
? You are offering your services as a
problem-solver
? You are building the foundations for a
fruitful long-term business partnership
You do not have to be born with selling
skills to sell your product or your service.
Everyone develops their own style of
selling. But whatever your style, your goal
is identical: to try and clinch the deal.
9. SELLING & DISTRIBUTION SELLING
CASE STUDY
When Sanders had to close his
highly successful restaurant when a
new interstate highway completely
bypassed his town, he decided to try
and sell his Kentucky Fried Chicken
recipe. He drove across the country,
cooking batches of chicken for
restaurant owners and their
employees, but no one jumped at
the opportunity of going into
business with him. Sanders had
been rejected by over 1,000
restaurants before Harman’s Cafe in
Salt Lake City agreed to pay for the
privilege of using Sander’s unique
chicken recipe. The idea caught on,
and everyone knows the end of the
story. Sanders’ stubborn tenacity
made him believe that even after
1,000 rejections, someone would
eventually say “Yes”.
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? Internet – The Internet is becoming an
increasingly popular direct marketing
channel
Indirect marketing channel –
independent representatives & agents
Reps and agents are independent
contractors who find outlets for your
products. When you work through an
intermediary like a rep or agent, you are
not selling directly to your customer. Unlike
wholesalers, these freelance sales agents
do not purchase your product. They meet
their own costs and are paid only
according to results.
The advantages of using a rep/agent
include:
? Cost advantages – they only earn
commission when they sell on your
behalf
? If they don’t sell, you are not left with
hefty overheads, such as salary, car
and office space
The disadvantages include:
? You don’t control the time they spend
pushing your business
? If they find other products easier to
sell, or they are offered higher
commission to sell similar products to
yours, they may decide to give
relatively little effort to promoting your
products
? If they sell your product/service to a
disreputable customer, you could be
left with unpaid bills
If you intend to appoint a rep or agent,
it is a good idea to draw up a written
agreement so that both parties understand
what is expected.
DISTRIBUTION CHANNELS
Once you have decided what kind of
business you are setting up, you need to
choose a combination of distribution
channels for delivering your product or
service to your customers.
Direct marketing channels
If you are a service business or a small
manufacturer, you will probably use a
Direct Marketing Channel, whereby you
and your salaried staff sell directly to your
customers. By customer, we mean anyone
who buys directly from you, whether it’s a
consumer, another business, a retailer or a
wholesaler:
? Consumers (B2C) – If you manufacture
kitchen tables, and you sell directly to
consumers, you are using a direct
marketing channel. Similarly, if you
have a retail outlet, you are selling
directly to the customers who come
into your shop
? Other businesses (B2B) – If your service
or your product are geared for the
business market rather than for the
consumer market, then you are
dealing directly with your business
customers
? Retailers – The retailer is an
intermediary who sells your product on
to their customers. Although you don’t
sell directly to these customers, the
retailer is your direct customer
? Wholesalers/distributors – These are
also intermediaries who buy your
product in bulk and distribute it to
retailers and other outlets. They can
handle storage of your product,
advertising and promotion to retailers
and/or end-users. Although you don’t
sell directly to the end-user, the
wholesaler/distributor is your direct
customer
SELLING CHECKLIST
1. Be confident about the product.
2. Smile.
3. Enthusiastically describe the
benefits.
4. Politely rebuff any objections.
5. Avoid jargon – speak in the
language your customer
understands.
6. Remember and use your
customer’s name.
7. Remember personal details of
your customers.
8. Learn your customers’ buying
habits, likes and dislikes.
9. Be sure you are talking to the
person who can close the sale.
10.Learn how the customer found
you (or you found the customer).
11.Be aware of the customer’s
experience with your
competition.
12.Be aware of how your product/
service will benefit the customer.
13.Be convinced in your own mind
that the price is right.
14.Be clear about what price you
agree on.
15.Be clear about the payment
terms.
16.Be clear about the delivery
method and date/time.
17. Be persistent.
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EXPORT
Export used to have an exotic ring to it, but
in today’s marketplace, it simply means
that your customer lives outside your
national boundaries.
In this age of global communications,
overnight delivery and streamlined
logistics, having an export customer can
be no more complicated than having a
domestic customer – so long as the price
is right and the customer is happy.
If you make Christmas cakes, it might be
easier to deliver a truckload to Liverpool
than to Newport.
Is one export customer enough to make it
worth developing an export strategy? It is
difficult to generalise. Just as you should
avoid letting any single domestic customer
account for too much of your business, it
is not a good idea to allow a single export
customer to account for too much of your
total business.
Another thing to remember is that once
you have established procedures for
handling orders to one export customer,
you have the infrastructure to absorb
additional export customers.
POINTS TO BE COVERED IN YOUR
REPRESENTATION AGREEMENT
Products/services – Define which
products or services are covered in
the agreement.
Price – Define the retail price of the
product, since you will be issuing
the invoice.
Payment – Define who is
responsible for collecting payment.
Rate of commission – Define the
exact rate of commission that the
rep will earn on each sale.
Territory – Define the geographical
territory in which the agent will
operate (for example, the town,
county, region, or country).
Type of customer – Define what
kind of customer you are looking
for, and also define what kind of
customer you don’t want.
Duration of agreement – It is a
good idea to limit the term of the
agreement, so that you can review
performance, and if necessary
revoke the agreement if it’s not
working.
DISTRIBUTION CHANNELS
CHECKLIST
1. Are you reaching your customers
in the most cost-effective way?
2. Is your business more suited to
direct marketing or indirect
marketing?
3. Is the final price that your
customer pays (whether the
customer buys from you, from a
shop, from a wholesaler or from
a rep) the right/appropriate
price?
4. Are you sure that the end
customer is being provided with
service and support?
5. Are you devoting enough time
and energy to your core
competency?
6. How does this distribution
channel affect your bottom line
(can you afford it?)?
7. What channels do your
competitors use?
8. Where are the weaknesses in
your system?
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Small businesses involved in a creative
service industry will hardly notice the
difference between export or domestic
work. It takes exactly the same amount of
time and effort for a designer to send a
graphics file by email to Chicago as to
Carmarthen. It takes the same time to
email the text for a brochure to London as
to Llanelli. It takes the same time to show
your customer in Rimini what his website
will look like as it takes to show your
customer in Rhosmaen.
The only justification for taking the export
route is if you find an export customer who
makes it worth your while. There is no glory
in being an exporter who loses money on
every export transaction.
Use the checklist below to help you plan
your export strategy.
EXPORT CHECKLIST
1. Are your export plans part of your initial business plan and marketing strategy, or the
result of a marketing opportunity you don’t want to miss?
2. Which products/services do you want to export and to which foreign markets?
3. What primary and secondary research have you conducted on your target market?
4. Have you visited these countries in person to get a feel for the market?
5. What marketing distribution channels are you planning to use, and who are you
appointing to manage the marketing and sales operations?
6. Does your company possess the necessary language skills at all levels of the
organisation, from telephonists to customer support?
7. Have you organised your administration for foreign currency payments?
8. Are you complying with special safety, environment, quality, packaging, language,
and customs/excise regulations?
9. Are you sure your bottom-line profit justifies the extra distribution costs?
10. What are your sales targets per country/market/segment?
11. Will the energy you put into export place undue strain on your organisation?
12. Have you developed suitable marketing/promotional literature for your export markets?
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But once you have achieved your short-
term goal of acquiring new customers, the
balance shifts. Your medium/long-term
goal is to devote more and more efforts to
customer retention. Customers who have
given you a vote of confidence by doing
business with you become your most
valuable asset. You must continue to
provide them with good service, continue
to meet (or even exceed) their
expectations, and these satisfied
customers will return time and time again.
Customer Relations Management (CRM) is
not just a new way of saying customer
service – it is a better way. By making
customers more than mere transactions
and focusing on the relationship aspect,
you will be better equipped to engage in
nonstop wooing of your loyal customers.
It also makes good business sense to
focus your marketing energy on loyal
customers:
? 20% of your loyal customers usually
account for 80% of your revenue
? You invested considerable time, effort
and money in winning these customers
? You can drive your marketing costs
down, because you no longer have to
try and reach such a wide audience
? Dissatisfied customers rarely complain
– they simply vote with their feet (or
their wallets)
The key role of customer service in the
marketing of your business cannot be
over-emphasised. It may be a truism, but
without satisfied customers, your business
will not survive.
Customer service involves:
? Delivering what you promised
? Being pleasant and friendly
? Willingness to help
? Providing prompt service
? Well-trained staff
? Personal attention
? Little things that make the difference
Your staff (which includes you) must
understand how much importance you
attach to customer service. You will find
that employees who are treated with
respect will treat your customers with
respect. Your goal is to ensure that your
customers receive a consistently good level
of service, no matter who they encounter
in your business.
Poor customer service, for example, can
drive your customers to your competitor
just as effectively as a heavy media
campaign mounted by your competitor.
CUSTOMER RETENTION
When you first start your new business, it
is only natural to channel all your
marketing efforts into new customer
acquisition. Without customers, you will
not survive, and your initial focus must be
on creating a solid customer base. The
way to find these customers is via the
marketing tools described in this
publication.
10. CUSTOMER RELATIONSHIP MANAGEMENT
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There is evidence that dissatisfied
customers tell up to 10 friends and
colleagues about their negative experience.
Just think how fast you could lose potential
customers.
A high level of customer retention can
have a critical effect on your bottom line:
? Higher staff morale
(= lower staff costs)
? Lower staff turnover
(= lower recruitment costs)
? Longer customer retention
(up to 50% longer)
? More repeat business
(20% to 40% lower selling costs)
? More referrals (20% to 40% lower
marketing costs)
? Higher prices (7% to 12% higher)
? Increased margins
(7% to 17% more profit)
CALCULATING THE LIFETIME
VALUE OF A LOYAL CUSTOMER
Average sale value per customer
£______
Multiplied by sales per year per
customer
____
Total sales value per year per
customer
£______
Multiplied by no. of years your
customer
buys from you
____
Gross lifetime sales value per
customer
£______
If every loyal customer
recommends you to at least one
more customer, your sales will
soar.
CUSTOMER SERVICE CHECKLIST
1. Make sure the phone is always
answered promptly.
2. Train your staff in how to talk to
customers on the phone
3. Train your staff in how to talk to
customers in person.
4. Make sure orders are fulfilled
quickly and efficiently.
5. Establish grievance-handling
procedures.
6. Train your staff how to handle
difficult situations (for example,
irate customers).
7. Establish an ongoing dialogue
with your customers.
8. Regularly evaluate feedback on
how you are meeting customers’
needs.
9. Share your customer service
vision with your staff.
10.Visit/call/email your customers
on a regular basis.
11.Keep a record of the customer’s
details – name, address, phone,
email.
12.Maintain a positive buzz about
your product/service.
13.Aim to meet and exceed your
customers’ expectations.
14.Design your business to deliver
what your customers want.
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As a service provider, do not forget that
you deliver lots of extras that do not show
up as items on your invoice:
? Free consultation (meeting/s to
discuss the work/contract)
? Fast on-time delivery
? Free installation and setup
? Money-back guarantee
? First-year service
? Extended service hours
Because small service businesses are
selling an intangible product, they face
two big marketing challenges:
? How to market your service when,
even after you have completed the job,
there is often nothing customers can
hold in their hand
? How to price your service when you
cannot show your customer what you
propose to do for the price you are
quoting until the job is done – and
even then it could be too early to
judge
Not only do you have to somehow sell a
service that the customer can’t see, taste
or feel, you also need to convince the
customer that you can perform the service:
? To the customer’s satisfaction
? At least as well as, if not better than,
competing service providers
? At the same price, or less, than the
competition
11. SERVICE BUSINESSES
EXERCISE
List the added-value items that your
service business provides:
1.
2.
3.
4.
5.
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SERVICE PROBLEM
Insurance broker
House cleaning service
Landscape gardener
Web designer
PR consultant
Cover against theft and fire.
Home cleaning.
Redesign of private garden.
Website for new company.
A more positive image for a
restaurant after a food-poisoning
scare closed it down.
Customers are paying for something they hope will
never happen. The only tangible item they can hold
in their hand is the insurance policy itself.
Customers are paying for something they can’t see.
Even after the cleaning service has completed the
job, there is no tangible product left behind.
Customers can see photos of other jobs completed,
but even if they see 3D imaging, they cannot see the
finished version.
Customers can see examples of websites produced
for other companies, but they cannot see the final
version of their own website.
Customers can view examples of Media Releases and
press clippings, but it will take a while before they
can ascertain the effectiveness of the consultancy –
has the restaurant managed to shake off the poor
image?
EXAMPLE
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A big advantage about selling an intangible
service is that your customers often make
their purchase decisions based as much on
emotion as on facts. Exploit this by using
the language of benefits when trying to sell
your service.
One way of compensating for the small
size of your business is to emphasise your
professionalism by drawing up a document
that clearly defines what you do (and what
you do not) provide for the price agreed.
The more detailed the document, the less
room there is for misunderstanding.
Make sure that your customers understand
and appreciate these added-value items.
Service providers must make sure that
people know you are still around and keep
you in mind when the right project comes
along:
? Your follow-up calls after you have
completed a job should not only be
about chasing up your cheque. Find
out how the project is progressing
? Enquire whether the service you
provided achieved its goal
? Contact companies who failed to give
you their business last time round (or
failed to give you repeat business) –
just because you didn’t get the job
once doesn’t mean that they will never
give you work
A familiar problem with one-person (sole
trader) service companies is that
prospective customers might be
concerned that you cannot provide the
same level of service and reliability as a
bigger, more established company.
You can counter this by:
? Promoting yourself as a business and
not as an individual (“we”, not “I”)
? Focusing on your track record
? Emphasising your ability to work well
with large clients
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YOUR OWN SAMPLE AGREEMENT
Assignment
What does the
assignment include?
What does the
assignment not include?
Start date
Delivery date
Delivery methods
The price
Payment terms
Materials cost included?
Travel cost included?
Extra costs not included
SAMPLE AGREEMENT FOR WRITING A WEBSITE
Writing the text (content) for a website for ABC Engineering.
Stage 2: Presenting an outline of the site architecture (max. 10 pages).
Stage 3: Writing the text.
Stage 4: Delivering first draft.
Stage 5: Corrections.
Stage 6: Delivering final draft.
Stage 7: Proofreading of the text in its final web format.
This assignment is for writing only, and does not include the web design
or the technical posting of the website on the Internet.
20 January 200x.
20 February 200x.
Final text to be emailed to ABC Engineering and their website designer.
£1,000 + £175 VAT = £1,175.
£350 + VAT with order; £350 + VAT on delivery; £300 + VAT 30 days
after delivery.
Yes.
1 visit to the customer’s premises to collect the initial information –
further visits requested by the customer will be charged at .100 each.
If the client makes more corrections after the final draft, there will
be a surcharge of £100 per round of corrections – If the client requires
more than the agreed 10 web pages, there will be a surcharge of
£50 per page.
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Best of all, you will be exposed to these
new customers with the active
encouragement of the business that
acquired them in the first place.
The table on the next page shows some
examples of strategic cooperative
marketing ideas.
All these examples are win-win-win:
? You gain greater exposure because
these other businesses are telling their
customers about you
? The other businesses gain greater
exposure because you are telling your
customers about them
? The customers gain because they are
being wooed with special offers
CHUTZPAH
One of the most effective ways for small
businesses to add value to their marketing
is to use chutzpah. Originating in Yiddish
and Hebrew, chutzpah is a combination of:
? Cheek
? Nerve
? Audacity
? Guts
? Outrageousness
? Bottle
? Boldness
? Balls
The preceding chapters have focused on
the various options available to you as you
plan your marketing strategy.
But if you really want your marketing
efforts to stand out from the crowd, you
need to step back, look at all you have
absorbed about your business, and ask
yourself:
? What could you do differently?
? How can you make people sit up and
notice you?
? How can you attract attention to your
business in an unusual and
unconventional way?
One way for small businesses to compete
against larger competitors is to emphasise
the disadvantages of the competition’s
size. There is a long and noble tradition of
emulating Jack (of the beanstalk fame)
who used the giant’s weight against him.
The classic example is the famous Avis
tagline, “We try harder”, which capitalised
on the company”s number-two status.
Being seen as the underdog can appeal to
certain types of consumer. Niche markets,
such as the organic food industry and
various types of luxury goods, have used
this strategy to their advantage.
ALLIANCES & JOINT STRATEGIC
MARKETING VENTURES
Another way for small business owners to
achieve their marketing goals differently is
to cooperate with other businesses in
strategic marketing alliances and joint
ventures. By looking for opportunities to
reach the customers of complementary
businesses, you gain access to new
prospects.
12. DARING TO BE DIFFERENT!
Chutzpah allows you to achieve the
competitive edge you seek by:
? Challenging traditional methods of
problem-solving
? Looking for unconventional solutions
? Spotting opportunities that others have
missed
The table on page 70 offers some
examples of people who used chutzpah to
add pizazz to their marketing.
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Your Business
Sports shoe and
sportswear store
Wallpapering business
Dry cleaners
Nail bar
Fashion designer
Any business
Your target market
Men, women and children
Private customers moving
into a new home or
redecorating their existing
home.
Men and women.
Women (adults, teenagers
and girls).
Women.
All local business.
You share this
market with:
Fitness equipment
providers, fitness centres
and gyms, fitness trainers.
DIY stores.
Men’s fashion boutiques,
ladies fashion boutique.
Hair salon.
Hotel.
Local hotels, local
restaurants.
You could add value to
them by:
Handing out 10% discount
vouchers for their services
to your customers.
Providing wallpapering
classes in their stores.
Offering discount vouchers
for their stores to your
customers.
Offering free-perm gift
certificates to your
customers.
Hosting a fashion show for
the hotel’s guests – the
hotel also gains from sale
of extra food and drink.
Sponsoring a free monthly
business-card draw –
diners place their
business-cards in a bowl –
you pay for the prize
(dinner for two, free
weekend, etc.)
They could help you by:
Handing out 10% discount
vouchers for your store to
their customers.
Referring their customers
to you when they want a
professional service.
Offering dry cleaning
vouchers to their customers.
Offering free nail art gift
certificates to their
customers.
Allowing you to sell your
line of fashions after the
show.
Allowing you to get publicity
as the sponsor, and to
access a valuable extra
source of business cards for
your database.
STRATEGIC CO-OPERATIVE MARKETING IDEAS
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Company
Fran Rooney, who bought
Baltimore Technologies,
a small 6-person
consultancy firm, in 1996.
Simon Woodroffe, founder
of Yo! Sushi restaurant-
chain in London.
Steven Spielberg,
filmmaker.
Rosemary, who set up her
own web design company
while still at college.
Ely Callaway, manufacturer
of revolutionary
golf clubs.
Harry Ramsden, owner of
Britain’s biggest fish and
chip restaurant.
Marketing challenge
To make tiny Baltimore
look like one of the major
players in the network
security field
dominated by long-
established US companies.
To find prestigious
multinational sponsors
who would impress
potential customers
and investors.
To break into the movie
business after failing to
get into the University of
Southern California
Cinema School.
To break into the inner
circle of the tightly-knit
local business community.
Ely’s ERC II driver was
banned by the US Golf
Association after it failed
to conform to testing
limits.
To pull off a major
publicity coup before
he retired.
Result
Fran’s marketing chutzpah
forced major US rivals to
notice the Irish upstart
company, and the company
was perceived as a global
leader in its field.
Thanks to Simon’s chutzpah,
investors and banks were
suddenly taking note of
Simon’s new sushi
restaurant with the famous
backers.
Spielberg became the
youngest director ever to be
signed to a long-term deal
with a major Hollywood
studio.
The minister agreed to be
guest of honour at the
launch of Rosemary’s new
local information website. On
the evening of the launch,
the business community
came out in force.
Rosemary’s chutzpah
gave her the opportunity to
wow a high-profile audience
of business people.
Thanks to Ely’s chutzpah,
suddenly everyone wanted
to buy the ERC II driver.
Harry earned himself a
place in the Guinness Book
of Records, and received
live coverage on the BBC.
Chutzpah
Just months after buying Baltimore, Fran handed
out huge cigars sporting the Baltimore logo at the
world’s major security software event, the RSA Data
Security Conference. At subsequent shows he threw big
parties, brought over the entire Dublin office to boost
the impression of Baltimore’s size, and co-sponsored
the RSA event, with the Baltimore name and logo
featured on all the conference and publicity material.
When Honda agreed to loan Simon a motorcycle, he
expressed his gratitude by appointing them official
sponsor of the restaurant. When All Nippon Airways
gave him an upgrade on a ticket to Japan where he
was conducting research for his restaurant, he
appointed them sponsors. He then displayed the
names of his two prestigious “sponsors” on the
menus, on the window, on the front door, on the
delivery bikes.
During a bus tour of Universal Studios, he discovered
an abandoned janitor’s cabin. Each day, he turned up
at the studio gates with a clipboard in his hands. The
security guards always waved him through. He turned
the cabin into his office, placed his name on the door
(“Steven Spielberg, Director”), and produced a short
movie that went on to win several film
festival awards.
Rosemary set her sights on the influential local TD and
cabinet minister. She discovered where he liked having
a coffee, and just happened to be there every time he
was there. When the minister invited her to join him
one morning, she told him of her business plans and
the difficulties facing a young entrepreneur.
Realising that if golf pros could not use the ERC II in
tournaments, it could not be marketed, Ely persuaded
the Royal and Ancient Golf Club of St. Andrews, the
governing body of golf outside North America, to
recognise the ERC II. They endorsed it as a legitimate
club for all championship golf.
In 1952, Harry decided to sell fish and chips at the
price (1 1/2p) they had been on 7 July, 1912, when he
opened his first shop in Bradford. In a single evening,
Harry served more than 10,000 portions of fish and
chips, causing traffic jams for miles around.
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Managing your business > Marketing your business
A small dose of chutzpah can go a long
way. Every small business owner has the
opportunity to come up with the chutzpah
to market their business differently. Every
small business owner can use chutzpah to
find unusual ways of achieving their
marketing goals.
Below is an example of a direct mailer
produced by Alan Clark, a one-person PR
consultant. Alan’s tone is deliberately
upbeat and cheeky, which is precisely the
impression he sought to achieve.
Use chutzpah to your advantage. If you
want to add that extra spark to the
promotion of your business, turn on the
chutzpah – the secret weapon in your
marketing armoury. Now look back over
the preceding chapters, and ask yourself
how you could use chutzpah to add extra
flair and fun to the marketing of your
business.
ON THE VIRTUES OF WORKING WITH A VIRTUOSO PR CONSULTANT
Introducing the new, compact and improved Alan Clark Communications
How would you react if I were to boldly announce that Alan Clark Communications is a smaller
PR consultancy than it seems? You’d probably say to yourself, “What an odd way to promote
any business, never mind a PR business”.
So let me explain.
As founder and head of the eponymous Alan Clark Communications, I ran a successful mid-
size PR consultancy for over a decade, with offices in downtown Glasgow. In recent years,
I started feeling that I was a victim of my own success. I originally entered the PR field
because I knew I had what it takes to deliver high-quality, proactive PR services to high-
profile clients. But the bigger my company became, I found that I was doing less and less
of the hands-on client work that I really love. While I enjoyed running the business, I
increasingly found myself missing the cut and thrust of media liaison, crisis management,
and all the rest.
I decided to get back to what I do best – establishing intimate working relationships with my
clients, and personally attending to their diverse PR needs. So I converted my garage into a
super-efficient office, in the process gaining 2 extra working hours a day by not having to
commute.
Today, Alan Clark Communications is me. Moi – Himself. WYSWYG.
When you choose to work with Alan Clark Communications, you get Alan Clark, the virtuoso
PR consultant.
When you choose to work with Alan Clark Communications, you join a small core of hand-
picked clients who prefer an experienced PR virtuoso to having to deal with junior staff.
When you choose to work with Alan Clark Communications, you are working with a PR
virtuoso, whose clientele includes Europe’s largest low-fares airline Ryanair.
When you choose to work with Alan Clark Communications, you are working with a PR virtuoso
chosen to advise Disney, the world’s largest entertainment organisation, in Scotland.
When you choose to work with Alan Clark Communications, you are working with a PR virtuoso
who advises Hutchesons’ Grammar School, Scotland’s largest independent school.
Why did they choose Alan Clark Communications?
* Because they value the wealth of experience that I bring to every job.
* Because they value the creative ideas and strategies that I bombard them with.
* Because they value my wit and my wisdom.
* Because they value my ability to think and act clearly under pressure.
* Because they value the fact that they always get superb value for money.
* And above all, they value the fact that I am 100% dedicated to promoting
their image in the media.
I know that not every business or organisation is comfortable working with a solo operation.
But I also know that there are lots of potential clients out there who feel that their interests
are best served by a virtuoso with an impressive track record.
Give me a call. Let’s meet and chat. If you like what you see and hear, and if I feel confident
that I can deliver the results you require, we can make great music together.
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Managing your business > Marketing your business
? Develop a USP that communicates a
powerful statement of the uniqueness
of your service or product
? Formulate the marketing messages
that will attract customers and
persuade them to do business with
you
? Convince yourself of the value of your
product or service before you try and
convince others
? Think of yourself as a walking and
talking marketing vehicle, dedicated
24 hours a day to projecting a positive
image of your business
? Your business card can be your most
valuable marketing tool . the next card
you give out could land you your
biggest customer yet
? Resist the temptation to write your
own marketing literature or design
your own visual communications
? Look for opportunities to get a story
about your business in the local,
national and trade media
? Find out if your potential customers
will use the web to find you before you
invest in a website
? Always match your message to your
market using the right medium. There
are professionals out there who
specialise in creating and
communicating your visual and textual
marketing messages
? Explore the power of word-of-mouth
referrals and the potential of joint
venture marketing
? Make your marketing efforts stand out
from the crowd by daring to be
different
Everything in this workbook is designed to
help you create your own exclusive
marketing strategy.
Read through the highlights below, take a
look at the sample marketing strategy for
the fictitious Welsh Fishing Supplies, and
you will be ready to go out and sock it to
them!
TIPS TO REMEMBER
? The main goal of your business is to
create a coherent marketing strategy
that will drive the engine of your
business
? Understand the business context in
which you operate
? Make time for keeping up-to-date on
the latest developments in your market
? Your customers are the lifeblood of
your business – without them, your
business will not survive.
? It’s not enough for your customers to
need your product or service, they
have to want it
? Once you have achieved your short-
term goal of acquiring new customers,
devote most of your efforts to
pampering your existing customers
? Guide your customers from
unawareness through awareness
through knowledge through preference
through conviction to action
? Develop a positioning statement that
expresses the core message you want
all your internal and external
communications channels to deliver
13. CREATING A MARKETING STRATEGY
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Managing your business > Marketing your business
SAMPLE MARKETING STRATEGY FOR WELSH FISHING SUPPLIES
OVERVIEW
Product Line Description
? A range of three fishing tackle boxes for attaching to the hull of a fishing boat. Made of tough plastic, the tackle boxes are
available in small, medium and large
Business Description
? A manufacturing company located in Burry Port, Llanelli
? Wholly owned by the founder, initial capital investment: £10,000
? The company imports components and assembles them locally
The markets to be served are:
? Short-term (first year): West Wales
? Medium-term: National
? Long-term: Export
Target Market
? Leisure fishing boat owners
Market Conditions
? Growth market – overall number of potential users has risen 20% annually since 1999 (quote source). The total number of
outboard motor boat sales 1998-2003 were 10,000 units (quote source). Projected sales at the same level over the next
five years = 50,000 units, plus 75% of units sold in the past 5 years still in use = 37,500 units, gives a total potential
market of 87,500 units in the national market. The estimated share of the West Wales is 20% of this, giving a potential
market of 17,500 units
MARKETING ISSUES
Customer Profile: Fishing boat owners
? Currently own fishing tackle boxes
? Read or subscribe to fishing magazines
? Listen regularly to fishing programmes on the radio
? Regularly attend boat shows
? Occasionally participate in fishing contests
? Male head of household
Product Positioning
? The fishing tackle box is positioned as a new convenient accessory that provides added convenience
for the boat fisherman
? Product benefits: compact modern design, convenient, safe storage for fishing tackle, added value to the fishing boat
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Managing your business > Marketing your business
Pricing Issues
? The pricing reflects the product’s added value compared to the tackle box they now own
? The retail price of the boxes has been set at £15 for the small version, £25 for the medium size, and £45 for the large
? Wholesale pricing will be 40% below retail pricing
Packaging Issues
? Products will be shrink-wrapped, and will be accompanied by a brochure that includes features, benefits and installation
instructions
? Boxes are packed six per cardboard shipping container
? Shipping container must include name of product, name of manufacturer, product code number, and gross weight of case,
and must conform to EU regulations
Distribution Issues
? The business is centrally located for easy access to target markets
? Tight procedures in place for coordinating orders received, production scheduling, shipping, and invoicing
? Shipments to retail stores via company’s own delivery vehicle
? Wholesale orders: either shipped via commercial road transport, or collected by wholesale customer from factory
? Raw materials/components from suppliers
? All components are imported directly from Far East, and will be stored in plant or in local, outside warehouses
? Finished goods will be stored in plant or in local, outside warehouses
? Inventory control system will provide efficient goods in/good out
Marketing Channels
? Marinas
? Fishing tackle stores
? Wholesale/chain: Boating supply houses, chain hardware stores, fishing tackle distribution
SALES TARGETS
Short-term (first year):
? To attain 10% of the market = 1,750 units
? To attain distribution in 50 retail outlets
? To attain distribution with one national retail chain
Long-term (five years):
? To attain retail distribution in 250 retail outlets
? To attain distribution with five national retail chains
? To reach a sales volume of 15,000 units by the end of the fifth year
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Managing your business > Marketing your business
MARKETING STRATEGIES
? Preliminary sales promotion programme in local market
? Direct sales and media campaign targeted at areas with lots of fishing and boating
? Media plan that includes ads in fishing and boating magazines as well as local newspapers
? Publicity and advertising to be timed for just before and during the fishing and boating season
? Provide adequate staffing to supervise sales efforts and ensure high levels of customer service
MARKETING TACTICS
? Contact local retail outlets for initial sales, analyse dealer reaction, project sales after 90-day test
? Establish a reporting system to track sales efforts and results
? Produce a sales brochure for use in all sales presentations and direct mailings. Brochure should describe all features and
benefits of the products, price and ordering information, pictures of the products, and installation instructions
? Develop ads in various sizes for the different print media
? Develop media releases describing new product, its features and benefits.
? Meet editors of local press and local radio, invite them to cover the launch of the business
? Sponsor the weather forecast on local radio
? Send media release to fishing/sport editions of local/national newspapers and appropriate magazines
? Schedule participation in any boat and fishing events (fishing contests, festivals) in the region
? Prepare suite of promotional material, including brochures, photographs, product samples, testimonials
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03
Managing your business >
Marketing
your business
For all your business enquiries contact:-
T: 01269 590219
Publication produced by:-
Carmarthenshire County Council
Economic Development Division
Business Resource Centre
Parc Amanwy, New Road
Ammanford
Carmarthenshire SA18 3EP
T: 01269 590200
E: [email protected]
W: www.carmarthenshire.gov.uk
Publication funded under the Celtic Enterprise & Business Support Network, an Interreg IIIA
funded project, in partnership with Waterford City Enterprise Board Ltd and South East Region
Enterprise Boards
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